Mathematics, 16.08.2021 02:00 iicekingmann
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 — 1,500 1,500 4,500
Labor-hours 800 — 800 2,200
Department direct costs $ 3,800 $ 13,800 $ 15,500 $ 12,000
Required:
Use the direct method to allocate these service department costs to the operating departments
Answers: 3
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