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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Devel

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Answer #1
Allocation of cost by Direct Cost method
Particular Maintainance Personnel Printing Developing
Direct Cost $5,000.00 $12,000.00 $15,000.00 $10,000.00
Allocation of Maint Cost -$5,000.00 $1,250.00 $3,750.00
(5000*1/4) (5000*3/4)
Allocation of personnel cost -$12,000.00 $2,400.00 $9,600.00
(12000*500/2500) (12000*2000/2500)
Allocated Cost $18,650.00 $23,350.00
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Answer #2

printing

servive dept allocation= 0

maintanince: 5,000*1,000/4,000= 1,250

2,000+500= 2,500

personnel 12,000*500/2,500= 2,400

total cost= 1,250+ 2,400= 3,650


develop

service= 0

maintainace  5,000*3,000/4,000= 3,750

personnel  12,000*2,000/2,500= 9,600

total cost= 3,750+9,600= 13,350

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