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11-29. Cost Allocation: Direct (LO 11-2) Method University Printers has two service departments, Maintenance and Personnel, and two operating departments, Printing and Developing Management has
11-29. Cost Allocation: Direct (LO 11-2) Method 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. Maintenance Personnel Printing Developing 1,000 Machine- hours 1,000 3,000 500 Labor- hours 500 2,000 $5,000 $12,000 $15,000 $10,000 Department direct costs Required Use the direct method to allocate these service department costs to the operating departments
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