Exercise 11-34 (Static) Cost Allocation: Reciprocal Method (LO 11-4) 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 1,00e Machine-hours Labor-hours Department direct costs See $ 5,eee Printing Developing 1.ee3 , eee see 2, eee $15, eee $1e,eee $12, eee Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two servic departments.) (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amounts.) From: Service department costs Maintenance Developing Cost Allocation To: Personnel Printing 3 12.000 Maintenance 5 .000 3 Personnel Total S5,000 12.000 0 50 Pe 1 of 1 1 Next The Alpha Division of a company, which is operating at capacity, produces and sells 4,000 units of a certain electronic component in a perfectly competitive market. Revenue and cost data are as follows: (CIA adapted) Sales Variable costs Fixed costs $320,000 196,000 108,000 inces The minimum transfer price that should be charged to the Beta Division of the same company for each component is: 1 1.20-12.45