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Service Department Cost Allocation Kellogg Printing has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate
Service Department Cost Allocation Kellogg Printing 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 department. The following data appear in the company records for the current period. Maintenance Personnel Printing Developing Machine HourS Labor Hours Department Direct Costs 1.000 1.000 500 3,000 2.000 $5,000 $12,000 Required: 1. Using the direct method to allocate these service department costs, the total costs allocated to the Printing departments is $and to Developing is 1. Using the step method to allocate these service department costs (start with the Maintenance Department), the total costs allocated to the Pringing department is $ and to Developing is $
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