University Printers has two service dpeartments (Maintenance and Personnel) and two operating departments (Printing and...
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Accounting
University Printers has two service dpeartments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance cost on the basis of machine-hours in each department and personnel cost on the basis of labor-hours worked by the emploees in each. The following data appear in the company records for the currect period:
| Maintenance | Personnel | Printing | Developing | |
| Machine-hours | - | 1,000 | 1,000 | 3,000 |
| Labor Hours | 500 | - | 500 | 2,000 |
| Department Direct Cost | 5,000 | 12,000 | 15,000 | 10,000 |
Use the direct method to allocate these service department costs to the operating departments.
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