EXERCISE 4B-3 Step-Down Method L04-11 The Ferre Publishing Company has three service departments and two operating departments, Selected data from a recent period on the five departments follow: Service Departments Administration Janitorial Maintenance $140,000 60 15,000 Costs Number of employees Square feet of space occupied Hours of press time $105,000 35 10,000 Operating Departments Binding Printing Total $275.000 $430,000 $998,000 315 210 760 40,000 100,000 185,000 30,000 60,000 90,000 $48,000 140 20,000 The company allocates service department costs by the step-down method in the following order. Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time) Required: Using the step-down method, allocate the service department costs to the operating departments