University Printers has two service departments (Maintenance and Personnel) and two operatingdepartments (Printing and Developing). Management has decided to allocate maintenance costs onthe basis of machine-hours in each department and personnel costs on the basis of labor-hoursworked by the employees in each.The following data appear in the company records for the current period:Printing1,400MaintenanceDeveloping4,2003,200$10,700PersonnelMachine-hours1,400Labor-hours800800Department direct costs$2,400$12,400$13,400Required: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.)MaintenancePersonnelPrintingDevelopingService department costs$2,400 $ 12,400Maintenance allocation(2,400)Personnel allocationTotal costs allocated$$ 12,400$

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Description: University Printers has two service departments (Maintenance and Personnel) and two operatingdepartments (Printing and Developing). Management has decided to allocate maintenance costs onthe basis of machine-hours in each department and personnel co

Direct method of allocation: The direct allocation method is one of the techniques used to…

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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 1,400 Personnel Developing Machine-hours 1,400 4,200 Labor-hours 800 800 3,200 $10,700 Department direct costs $2,400 $12,400 $13,400 Required: Use the direct method to allocate these service department costs to the operating departments.

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 1,400 Personnel Developing Machine-hours 1,400 4,200 Labor-hours 800 800 3,200 $10,700 Department direct costs $2,400 $12,400 $13,400 Required: Use the direct method to allocate these service department costs to the operating departments.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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