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

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Accounting

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 1,100 1,100 3,300
Labor-hours 700 700 2,800
Department direct costs $ 6,000 $ 16,000 $ 17,300 $ 14,800

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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