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:  MaintenancePersonnelPrintingDevelopingMachine-hours— 1,800  1,800         5,400Labor-hours650   —   650         2,600Department direct costs     $4,000$14,000$15,900       $12,600Required: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 dept. costs    maintenance allocation    personnel allocation    total cost allocation

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Asked Nov 12, 2019
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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 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        
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Maintenance Personnel Printing Developing $14,000 service dept. costs $4,000 $2,400 s11,840 $14,240 (S4,000) maintenance allocation 800 $800 (S14,800) $2,960 $3,760 personnel allocation total cost allocation S0

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