University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printingand Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in eachdepartment 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:Printing480340Developing2,2081,139$22,000MaintenancePersonnel512Machine-hoursLabor-hours221Department direct costs$12,000$24,000$30,000Required:Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are onlytwo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediatecalculations. Round your final answers to the nearest whole dollar amounts.)Cost Allocation To:From:MaintenancePersonnelPrintingDevelopingService department costsMaintenancePersonnelTotal0 $$

Step 1 Cost allocation is the process of identifying, aggregating, and assigning costs to any…

Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only wo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate alculations. Round your final answers to the nearest whole dollar amounts.)

Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only wo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate alculations. Round your final answers to the nearest whole dollar amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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i.3
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