Question

Chapter 11 Homework i Saved 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. 0.76 points The following data appear in the company records for the current period: Skipped Maintenance Personnel 1,200 Machine-hours Labor-hours Department direct costs Printing 1,200 600 $14,200 600 $ 2,400 Developing 3,600 2,400 $11,100 $12,400 eBook Print References Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated $ 0 $ 0 $ 0 $

Answer 1

Printing Developing Mainknance & 2,400 ($2400) personal $12,400 $14,200 $11100 Selvice De pattment Cool Maintenance Allocation personnel fulcation 1, Total cost allocated ($ 12,400) 180 $600 $2480 & 17,280 $ 1800 $9920 & 22,820 1 80 - (1000+ 8600 - 4800) * Maintenanu Allocakon - machine -HOW Ruinting $2400 x 1200 $600 4800 Deweloping - $ 2400 x 3600 $100 4.800 * Personnel Allocation - labol Houl - 6600+ 2400 = 8000) Puinting - $12,900 x 600 = $2480 3000 Develoxing - $ 12,400 2400 3000 49920