Allocate the service department costs using the reciprocal

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Reference no: EM13570896

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			Printing			Developing
Machine-hours			?			510			510			2,380
Labor-hours			210			?			285			1,005
Department direct costs		$	10,000		$	27,000		$	34,000		$	23,000

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Note: Due to rounding, the costs allocated to the various departments may not add up to the total service department costs being allocated.) (Do not round intermediate calculations. Round final answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

	Cost Allocation To:
From:	Maintenance	Personnel	Printing	Developing
Service department costs	$	$	$	$
Maintenance
Personnel

Total	$	$	$	$

Reference no: EM13570896

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