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 mersonnel 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: Maintenance Fernonnel Printing Developing 4,200 3,100 $11, 700 1,400 900 1,400 Machine-hours 900 Labor-hours Department direct costa $2,800 $12, 800 $14, 500 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be ndicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing
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 mersonnel 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: Maintenance Fernonnel Printing Developing 4,200 3,100 $11, 700 1,400 900 1,400 Machine-hours 900 Labor-hours Department direct costa $2,800 $12, 800 $14, 500 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be ndicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 16P: Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead,...
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