Business, 15.04.2020 23:55 spoo262005

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 $ 10,000
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.)

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University Printers has two service departments (Maintenance and Personnel) and two operating depart...

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