Required:

**Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.**

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

- Allocate the service department costs using the step method, starting with the Maintenance Department.

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: Machine-hours Labor-hours Department direct costs Maintenance Personnel 1,300 900 $3,600 $13,600 Printing Developing 1,300 3,900 900 3, 100 $15,200 $11,600 Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated $ 0 $ 0 $ 0 $ 0