Answer:
The Ferre Publishing company
Service Costs Assigned to each Operating Department:
                                 Service Departments               Operating Departments
               Admin.    Janitorial    Mainten.       Binding      Printing    Total
Costs  $168,000   $126,000   $57,600     $330,000  $516,000 $1,197,600
Admin (168,000)                                             100,800     67,200     0
Janitorial                (126,000)                          36,000     90,000      0
Maintenance                            (57,600)          19,200     38,400      0
Total cost                                                    $486,000   $711,600 $1,197,600
Explanation:
a) Data and Calculations:
                                 Service Departments               Operating Departments
                  Administration Janitorial Maintenance     Binding      Printing    Total
Costs          $168,000        $126,000     $57,600     $330,000  $516,000   $1,197,600
Number of
 employees           60                    35              140              315         210    760
Square feet of
 space occupied 15,000       10,000       20,000        40,000      100,000    185,000
Hours of 
press time                                                                     30,000      60,000     90,000
Allocation bases:
Administration cost = Number of employees 525
Janitorial cost = Square feet 140,000
Maintenance cost = Hours of press time 90,000
Allocation Rates and to Operating Departments:
Administration $168,000/525 = $320 per employee
Binding = 315 * $320 = $100,800
Printing = 210 * $320 = $67,200
Janitorial costs = $126,000/140,000 = $0.90 per square feet
Binding = 40,000 * $0.90 = $36,000
Printing = 100,000 * $0.90 = $90,000
Maintenance costs = $57,600/90,000 = $0.64 per press hour
Binding = 30,000 * $0.64 = $19,200
Printing = 60,000 * $0.64 = $38,400