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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and...

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Accounting

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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 1,000 1,000 3,000 Labor-hours 2,000 Department direct costs $ 5,000 $12,000 $15,000 $10,000 500 500 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.) Cost Allocation To: Personnel Printing Maintenance Developing From: Service department costs Maintenance Personnel Total

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