Part III Cost Management Systems (LO 11-3) 11-30. Cost Allocation: Step Method Refer to the data for University Printers in Exercise 11-28. Required Allocate the service department costs using the step method, starting with the Maintenance Department. What effect does using this method have on the allocation of costs? Maintenance Personnel 1,000 Machine-hours ....... Labor-hours ...... Department direct costs.... Printing 1,000 500 $15,000 Developing 3,000 2,000 $10,000 500 $5,000 $12,000