Using Reciprocal Method

Exercise 11-34 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) 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 Personnel 510 Machine-hours Labor-hours Department direct costs Printing 510 210 $34,000 Developing 2,380 1,065 $20,000 225 $12,000 $27,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Cost Allocation To: Maintenance Personnel Printing $ 12,000 $ 27,000 Developing From: Service department costs Maintenance Personnel Total $ 12,000 $ 27,000 $ 0 $ $ 0