University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and...
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Accounting
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
Printing
Developing
Machine-hours
1,700
1,700
5,100
Labor-hours
700
700
2,800
Department direct costs
$
2,400
$
12,400
$
14,100
$
11,000
Required:
Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance
Personnel
Printing
Developing
Service department costs
$2,400
$12,400
??
?
Maintenance
(2,400)
???
?
?
Personnel
??
?
?
Total costs allocated
$
$12,400
$0
$0
Answer & Explanation
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