Exercise 11-34 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) University Printers has two service departments...
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Exercise 11-34 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine hours in each department and personnel costs on the basis of labor hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel 429 Machine-hours Labor-hours Department direct costs 289 $11,000 Printing 396 306 $30,000 Developing 2,475 1,105 $24,000 $21,600 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Maintenance Cost Allocation To: Personnel Printing Developing From Service department costs Maintenance Personnel Total
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