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 emplayees in each. The following data appear in the company records for the current period: Machine-hours Maintenance Personnel Printing Developing 2,000 2,000 900 4,000 Labor-hours 900 $3,600 2,100 $12,600 Department direct costs $13,600 $14,200 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Ces Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated 이 $ 이 $ 이 $

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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
2,000
Printing Developing
2,000
900
$14,200
Machine-hours
4,000
Labor-hours
900
2,100
$12,600
Department direct costa
$3,600
$13,600
Required:
Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should
be indicated by a minus sign. Do not round intermediate calculations.)
ces
Maintenance
Personnel
Printing Developing
Service department costs
Maintenance
Personnel
Total costs allocated
이 $
이 $
Transcribed Image Text: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 2,000 Printing Developing 2,000 900 $14,200 Machine-hours 4,000 Labor-hours 900 2,100 $12,600 Department direct costa $3,600 $13,600 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) ces Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated 이 $ 이 $
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