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 Required: Maintenance Personnel 2,000 900 $3,600 $13,600 Printing 2,000 900 $14, 200 Developing 4,000 2,100 $12,600
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 Required: Maintenance Personnel 2,000 900 $3,600 $13,600 Printing 2,000 900 $14, 200 Developing 4,000 2,100 $12,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vishnu
Transcribed Image Text:Exercise 11-31 (Algo) Cost Allocation: Step Method (LO 11-3)
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
2,000
2,000
900
$14,200
Machine-hours
Labor-hours
Department direct costs
Maintenance
Service department costs
Maintenance
Personnel
Total costs allocated
900
$ 3,600
Required:
Allocate the service department costs using the step method, starting with the
Maintenance Department. (Negative amounts should be indicated by a minus sign. Do
not round intermediate calculations.)
$
$13,600
Maintenance Personnel
0 $
Printing Developing
0 $
Developing
4,000
2,100
$12,600
0
$
0
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