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.

RequiredUse the direct method to allocate these service department costs to the operating departments.

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Printing Developing Maintenance Personnel 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