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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

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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: 10 points Maintenance Personnel 1, eee Machine-hours Labor-hours Department direct costs Printing Developing 1,000 3,888 500 2,800 $41,750 $31,500 500 $13,000 eBook $39,5ee Print University Printers estimates that the variable costs in the Personnel Department total $17,250 and in the Maintenance Department variable costs total $8,000. Avoldable fixed costs in the Personnel Department are $6,100. References Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without Increasing total costs? (Do not round Intermediate calculations.) Maximum Amount

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