Question: Can you please answer question from chapter 11, exercise 28 in fundamentals of cost accounting, Lanen, 5th edition. Thanks! Cost Allocation: Direct Method University Printers

Can you please answer question from chapter 11, exercise 28 in fundamentals of cost accounting, Lanen, 5th edition. Thanks!

Cost Allocation: Direct Method

University Printers has two service departments (Maintenance & Personnel) and two operating departments (Printing & Development). Management has decided to allocate maintenance costs on the basis of machine-hours in each department in 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 Machine Hours ---- 1,000 1,000 Labor-hours 500 ---- 500 Department Direct costs $5,000 $12,000 $15,000

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

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