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: Personnel 384 Machine-hours Labor-hours Department direct costs Maintenance From: Service department costs Maintenance Personnel Total 360 $12,000 Maintenance $24,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) $ Printing 512 280 $25,000 Personnel 0 $ Cost Allocation To: Developing 2,304 1,360 $18,000 0 $ Printing Developing 0 $ 0

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: Personnel 384 Machine-hours Labor-hours Department direct costs Maintenance From: Service department costs Maintenance Personnel Total 360 $12,000 Maintenance $24,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) $ Printing 512 280 $25,000 Personnel 0 $ Cost Allocation To: Developing 2,304 1,360 $18,000 0 $ Printing Developing 0 $ 0

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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