University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printingand Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in eachdepartment 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:Printing1,400900MaintenanceDeveloping4,2003,100$11,700PersonnelMachine-hours1,400Labor-hours900Department direct costs$2,800$12,800$14,500Required:Allocate the service department costs using the step method, starting with the Maintenance Department. (Negativeamounts should be indicated by a minus sign. Do not round intermediate calculations.)MaintenancePersonnelPrintingDevelopingService department costsMaintenancePersonnelTotal costs allocated$

Name: University Printers has two service departments (Maintenance and Pers
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Description: University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printingand Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in eachdepartment and personnel co

Computation of allocation of service department overhead costs based step method is shown below The…

Business

Accounting

equired: llocate the service department costs using the step method, starting with the Maintenance Department. (Negative mounts should be indicated by a minus sign. Do not round intermediate calculations.)

equired: llocate the service department costs using the step method, starting with the Maintenance Department. (Negative mounts should be indicated by a minus sign. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Printing 1,300 Developing 3,900 3,100 $11,600 Personnel Machine-hours 1,300 006 $15,200 Labor-hours 900 Department direct costs $3,600 $13,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 0 $ 0 $
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 3,000 2,000 $29,500 Machine-hours 1,000 1,000 Labor-hours 500 500 Department direct costs $14,000 $38,500 $43,500 University Printers estimates that the variable costs in the Personnel Department total $17,750 and in the Maintenance Department variable costs total $8,100. Avoidable fixed costs in the Personnel Department are $5,600. Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount
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: Printing 1,400 Maintenance Developing 4,200 3,200 $10,700 Personnel Machine-hours 1,400 Labor-hours 800 800 Department direct costs $2,400 $12,400 $13,400 Required: Use the direct method to allocate these service department costs to the operating departments. (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 allocation (2,400) Personnel allocation Total costs allocated $ $ 12,400 $
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: Printing Developing 3,000 2,000 $30,000 Maintenance Personnel Machine-hours 1,000 1,000 Labor-hours 500 500 Department direct costs $13,000 $37,750 $48,400 University Printers estimates that the variable costs in the Personnel Department total $19,000 and in the Maintenance Department variable costs total $8,500. Avoidable fixed costs in the Personnel Department are $6,600. Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount
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 2,000 Printing Developing 2,000 900 $14,200 Machine-hours 4,000 Labor-hours 900 2,100 $12,600 Department direct costa $3,600 $13,600 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.) ces Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated 이 $ 이 $
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: Personnel 384 Machine-hours Labor-hours Department direct costs Maintenance From: Service department costs Maintenance Personnel Total 360 $12,000 Maintenance $24,000 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.) $ Printing 512 280 $25,000 Personnel 0 $ Cost Allocation To: Developing 2,304 1,360 $18,000 0 $ Printing 0 Developing $ 0
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: Machine-hours Labor-hours Department direct costs Maintenance. Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Personnel 1,700 $14,800. Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 5 Maintenance Personnel Printing Developing Printing Developing 1,700 3,400 700 2,800 $16,000 $13,100. 0 $ 0$ 0 $ 0
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: Printing 480 340 Developing 2,208 1,139 $22,000 Maintenance Personnel 512 Machine-hours Labor-hours 221 Department direct costs $12,000 $24,000 $30,000 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.) Cost Allocation To: From: Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total 0 $ $
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: Machine-hours Labor-hours Department direct costs Maintenance Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Personnel 1,700 $14,800 Printing 1,700 700 $16,000 Developing 3,400 2,800 $13,100 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing
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 Machine-hours Labor-hours Department direct costs Personnel 1,200 Printing 1,600 400 Deve loping 3,200 2,000 $10,500 600 $2,100 $12,000 $13,600 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 Maintenance Personnel 斯 0. 2. 0. Total costs allocated %24
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 — 1,800 1,800 5,400 Labor-hours 650 — 650 2,600 Department direct costs $4,000 $14,000 $15,900 $12,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing service dept. costs maintenance allocation personnel allocation total cost allocation
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 Developing Printing 1,400 Machine-hours 1,400 4,200 Labor-hours 800 800 3,200 Department 'direct costs $2,400 $12,400 $13,400 $10,700 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Answer is not complete. Maintenance Personnel Printing Developing Service department costs $2$ 2,400 $ 12,400 O Maintenance allocation (2,400) O 600 1,800 V Personnel allocation 2,480 9,920 Total costs allocated $ 2$ 12,400 $ 3,080 $24 11,720