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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 1,700 1,700 5,100
Labor-hours 700 700 2,800
Department direct costs $ 2,400 $ 12,400 $ 14,100 $ 11,000

Required:

Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Maintenance Personnel Printing Developing
Service department costs $2,400 $12,400 ?? ?
Maintenance (2,400) ???

?

 ?
Personnel ?? ? ?
Total costs allocated $ $12,400 $0 $0

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