University Printers has two service departments (Maintenance andPersonnel) and two operating departments (Printing and Developing).Management has decided to allocate maintenance costs on the basisof machine-hours in each department and personnel costs on thebasis of labor-hours worked by the employees in each.
The following data appear in the company records for the currentperiod:
| Maintenance | Personnel | Printing | Developing |
| Machine-hours | | ? | | | 640 | | | 520 | | | 2,840 | |
| Labor-hours | | 399 | | | ? | | | 357 | | | 1,344 | |
| Department direct costs | $ | 11,000 | | $ | 22,000 | | $ | 30,000 | | $ | 18,000 | |
|
Required:
Allocate the service department costs using the reciprocalmethod. (Matrix algebra is not required because there are only twoservice departments.) (Negative amounts should be indicatedby a minus sign. Do not round intermediate calculations. Round yourfinal answers to the nearest whole dollar amounts.)
|
| | Cost Allocation To: | | From: | Maintenance | Personnel | Printing | Developing | | Service department costs | | | | | | Maintenance | | | | | | Personnel | | | | | | Total | | | | |
|
