please answer in 30 mins. 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:MaintenancePersonnelPrinting1,000Developing3,0002,000$10,000Machine-hours1,000Labor-hours500500Department direct costs$ 5,000$12,000$15,000Required:Allocate the service department costs using the reciprocal method. (Matrix algebra is not required becausethere are only two service departments.) (Negative amounts should be indicated by a minus sign. Do notround intermediate calculations. Round your final answers to the nearest whole dollar amounts.)Cost Allocation To:From:MaintenancePersonnelPrintingDevelopingService department costsMaintenancePersonnelTotal$O $0 $%24

Service Departments Operating Departments Total 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: 737 Personnel 1,000 Printing 1,000 500 $15,000 Developing 3,000 2,000 $10,000 Maintenance Machine-hours Labor-hours 500 Department direct costs $ 5,000 $12,000 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 vour final answers to the nearest whole dollar amounts.)

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: 737 Personnel 1,000 Printing 1,000 500 $15,000 Developing 3,000 2,000 $10,000 Maintenance Machine-hours Labor-hours 500 Department direct costs $ 5,000 $12,000 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 vour final answers to the nearest whole dollar amounts.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
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