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: Machine-hours Labor-hours Department direct costs Required: Maintenance Personnel 2,000 900 $3,600 $13,600 Printing 2,000 900 $14, 200 Developing 4,000 2,100 $12,600
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: Machine-hours Labor-hours Department direct costs Required: Maintenance Personnel 2,000 900 $3,600 $13,600 Printing 2,000 900 $14, 200 Developing 4,000 2,100 $12,600
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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![Exercise 11-31 (Algo) Cost Allocation: Step Method (LO 11-3)
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:
Personnel Printing
2,000
2,000
900
$14,200
Machine-hours
Labor-hours
Department direct costs
Maintenance
Service department costs
Maintenance
Personnel
Total costs allocated
900
$ 3,600
Required:
Allocate the service department costs using the step method, starting with the
Maintenance Department. (Negative amounts should be indicated by a minus sign. Do
not round intermediate calculations.)
$
$13,600
Maintenance Personnel
0 $
Printing Developing
0 $
Developing
4,000
2,100
$12,600
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0caf07ad-4540-4783-9964-b554a11c1f35%2Fca46347a-e51b-42a2-8973-7a8ed434a170%2Fzslir6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-31 (Algo) Cost Allocation: Step Method (LO 11-3)
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:
Personnel Printing
2,000
2,000
900
$14,200
Machine-hours
Labor-hours
Department direct costs
Maintenance
Service department costs
Maintenance
Personnel
Total costs allocated
900
$ 3,600
Required:
Allocate the service department costs using the step method, starting with the
Maintenance Department. (Negative amounts should be indicated by a minus sign. Do
not round intermediate calculations.)
$
$13,600
Maintenance Personnel
0 $
Printing Developing
0 $
Developing
4,000
2,100
$12,600
0
$
0
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