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. Personnel 1,700 Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Printing Developing 1,700 700 $14,800 $16,000 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.) 3,400 2,800 $13,100. Maintenance Personnel Printing Developing S 0 S
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. Personnel 1,700 Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Printing Developing 1,700 700 $14,800 $16,000 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.) 3,400 2,800 $13,100. Maintenance Personnel Printing Developing S 0 S
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 6E: Davis Snowflake Co. produces Christmas stockings in its Cutting and Sewing departments. The...
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