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

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Accounting

University Printers has two service departments (Maintenance andPersonnel) and two operating departments (Printing and Developing).Management has decided to allocate maintenance costs on the basisof machine-hours in each department and personnel costs on thebasis of labor-hours worked by the employees in each.

The following data appear in the company records for the currentperiod:

MaintenancePersonnelPrintingDeveloping
Machine-hours?6405202,840
Labor-hours399?3571,344
Department direct costs$11,000$22,000$30,000$18,000

Required:

Allocate the service department costs using the reciprocalmethod. (Matrix algebra is not required because there are only twoservice departments.) (Negative amounts should be indicatedby a minus sign. Do not round intermediate calculations. Round yourfinal answers to the nearest whole dollar amounts.)

Cost Allocation To:
From:MaintenancePersonnelPrintingDeveloping
Service department costs
Maintenance
Personnel
Total

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