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 | 1,500 | 1,500 | 4,500 | |||||||||
| Labor-hours | 900 | 900 | 3,100 | |||||||||
| Department direct costs | $ | 2,200 | $ | 12,200 | $ | 13,600 | $ | 11,200 | ||||
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