Question
In: Accounting
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 | — | 2,000 | 2,000 | 4,000 | ||||||||
| Labor-hours | 900 | — | 900 | 2,100 | ||||||||
| Department direct costs | $ | 3,600 | $ | 13,600 | $ | 14,200 | $ | 12,600 | ||||
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.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department
direct costs
$
5,000
$
12,000
$
15,000...
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
−
504
648
2,448
Labor-hours
360
−
252
1,188
Department direct costs
$
12,000
$
27,000
$
27,000...
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
5,000
$
12,000
$
15,000...
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department
direct costs
$
5,000
$
12,000
$
15,000...
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
16,000
$
38,750
$
49,100...
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...
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
14,500
$
35,500
$
47,350...
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...
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
5,000
$
12,000
$
15,000...
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
—
1,400
1,400
4,200
Labor-hours
900
—
900
3,100
Department direct costs
$
2,800
$
12,800
$
14,500...
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