Allocate the service department costs using the step method

Reference no: EM13586485

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		-		1,200		1,200		3,600
Labor-hours		650		-		650		2,600
Department direct costs	$	20,000	$	39,000	$	51,000	$	36,000

Required:

Allocate the service department costs using the step method, starting with the Maintenance Department.(Do not round intermediate calculations.)

Please put it in this format....... Maintenace Personal Printing Developing

Service Department Costs

Maintenance

Personal

Total Costs Allocated

Reference no: EM13586485

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