value 10.00 points Maintenance and Personnel) and two operating University Print

Question

value 10.00 points Maintenance and Personnel) and two operating University Printers has two service departments departments (Printing and Developing). Management has decided to allocate maintenance costs on the sis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the The following data appear in the company records for the current period employees in each. 4,200 550 3,200 $48,000 $57,000 $42,000 1,800 1,800 Machine-hours Labor-hours Department direct costs 550 $26,000 Required: Use the direct method to allocate these service department costs to the operating departments. (Do not round intermediate calculations.) Printing Service department costs Maintenance allocation Personnel allocation Total costs allocated References eBook &Resources; Exercise ORD: Study341

Explanation / Answer

Overhead allocation under direct method :

Maintenance Personnel Printing Developing Service department cost 26000 48000 57000 42000 Maintenance allocation -26000 7800 18200 Personnel allocation -48000 7040 40960 Total cost allocated     -     - 71840 101160

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