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:MaintenancePrinting1,300Developing3,9003,100$11,600PersonnelMachine-hours1,300006$15,200Labor-hours900Department direct costs$3,600$13,600Required:Use the direct method to allocate these service department costs to the operating departments. (Negative amountsshould be indicated by a minus sign. Do not round intermediate calculations.)MaintenancePersonnelPrintingDevelopingService department costsMaintenance allocationPersonnel allocationTotal costs allocated0 $0 $

The direct method is considered as a simple method for allocating service department costs to the…

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to alÌocate 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: Maintenance Personnel Printing 1,300 Machine-hours Labor-hours Department direct costs Developing 3,900 3,100 $11,600 1,300 900 900 $3,600 $13,600 $15,200 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 2$ $ 2$ $

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to alÌocate 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: Maintenance Personnel Printing 1,300 Machine-hours Labor-hours Department direct costs Developing 3,900 3,100 $11,600 1,300 900 900 $3,600 $13,600 $15,200 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 2$ $ 2$ $

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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