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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and 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 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 − 640 520 2,840
Labor-hours 399 − 357 1,344
Department direct costs $ 11,000 $ 22,000 $ 30,000 $ 18,000

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

Cost Allocation To:
From: Maintenance Personnel Printing Developing
Service department costs
Maintenance
Personnel
Total

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ekkarill92 answered 8 months ago
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