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Ch 11-Grading HW 8 5 points Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2) Saved University Printers has two service departments (Maintenance and
Ch 11-Grading HW 8 5 points Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2) 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. The following data appear in the company records for the current period: Skipped eBook References Maintenance Machine-hours Personnel 1,800 Labor-hours Department direct costs. 550 $ 2,000 Printing 1,800 550 Developing 4,200 $12,000 $13,600 2,200 $10,500 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.) Service department costs Maintenance allocation Personnel allocation Total costs allocated Maintenance Personnel Printing Developing 0 0
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