University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to alÌocate 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 1,300 Machine-hours Labor-hours Department direct costs Developing 3,900 3,100 $11,600 1,300 900 900 $3,600 $13,600 $15,200 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 2$ $ 2$ $
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to alÌocate 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 1,300 Machine-hours Labor-hours Department direct costs Developing 3,900 3,100 $11,600 1,300 900 900 $3,600 $13,600 $15,200 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 2$ $ 2$ $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...
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