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:

	Maintenance			Personnel			Printing			Developing
Machine-hours					1,100			1,100			3,300
Labor-hours		550						550			2,200
Department direct costs	$	5,800		$	15,800		$	17,100		$	14,500

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.)

	Maintenance	Personnel	Printing	Developing
Service Department Costs
Maintenance
Personnel
TOTAL Costs Allocated	$	$	$	$