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:     Maintenance Personnel Printing Developing Machine-hours   —     1,800     1,800     4,200   Labor-hours   550     —     550     2,200   Department direct costs $ 2,000   $ 12,000   $ 13,600   $ 10,500       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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2)

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:

 

  Maintenance Personnel Printing Developing
Machine-hours       1,800     1,800     4,200  
Labor-hours   550         550     2,200  
Department direct costs $ 2,000   $ 12,000   $ 13,600   $ 10,500  
 

 

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        
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