11-1 University Printers has two service departments (Maintenance and Personnel) and two operating departments...
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Accounting
11-1
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 | 1,700 | 1,700 | 5,100 | |||||||||
| Labor-hours | 700 | 700 | 2,800 | |||||||||
| Department direct costs | $ | 2,400 | $ | 12,400 | $ | 14,100 | $ | 11,000 | ||||
| | ||||||||||||
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.)
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