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 Printing 1,500 1,500 800 $15,500 Machine-hours Labor-hours Department direct costs Maintenance Service department costs Maintenance allocation Personnel allocation Total costs allocated - 800 $3,800 $13,800 Developing 4,500 2,200 $12,000 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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M73.

 

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:
Machine-hours
Labor-hours
Department direct costs
Maintenance
Service department costs
Maintenance allocation
Personnel allocation
Total costs allocated
-
800
$3,800
Personnel. Printing
1,500
1,500
800
$13,800
$15,500
Developing
4,500
2,200
$12,000
Required:
Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be
indicated by a minus sign. Do not round intermediate calculations.)
Maintenance Personnel Printing Developing
Transcribed Image Text: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: Machine-hours Labor-hours Department direct costs Maintenance Service department costs Maintenance allocation Personnel allocation Total costs allocated - 800 $3,800 Personnel. Printing 1,500 1,500 800 $13,800 $15,500 Developing 4,500 2,200 $12,000 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing
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