University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....
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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 1,400 Printing 1,400 900 Developing 4, 200 Machine-hours Labor-hours 3, 100 900 $2,800 Department direct costs $12, 800 $14,500 $11, 700 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.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated $ 0 $ 0 0 $ 0 $ 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 1,400 Printing 1,400 900 Developing 4, 200 Machine-hours Labor-hours 3, 100 900 $2,800 Department direct costs $12, 800 $14,500 $11, 700 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.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated $ 0 $ 0 0 $ 0 $
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1 Allocation Under Step Method Maintenance Personnel Printing 5000 12000 Service department cos... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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