Refer to the data for University Printers in Exercise 11-29. Required Allocate the service department costs using

Question:

Refer to the data for University Printers in Exercise 11-29.

Required
Allocate the service department costs using the step method, starting with the Maintenance Department. What effect does using this method have on the allocation of costs?

Exercise 11-29

Maintenance Personnel PrintingDeveloping Machine-hours 1,000 1,000 3,000 Labor-hours 500 500 2,000 Department $5,000 $12,000 $15,000 $10,000 direct costs