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:

Required
Use the direct method to allocate these service department costs to the operatingdepartments.

Transcribed Image Text:

Maintenance Personne Printing Developing Machine-hours Labor-hours Department direct costs 1,000 1,000 500 $45,000 3,000 2,000 $30,000 500 $15,000