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 Machine-hours Personnel 1,700 Labor-hours Department direct costs. 700 $4,800 $14,800 Printing 1,700 700 $16,000 Developing 3,400 2,800 $13,100 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.) Service department costs Maintenance allocation Personnel allocation Total costs allocated Maintenance Personnel Printing 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 Machine-hours Personnel 1,700 Labor-hours Department direct costs. 700 $4,800 $14,800 Printing 1,700 700 $16,000 Developing 3,400 2,800 $13,100 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.) Service department costs Maintenance allocation Personnel allocation Total costs allocated Maintenance Personnel Printing Developing

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University Printers Service Department Cost Allocation Direct Method Machine Hours Printing 1700 hou... View the full answer