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 1,000 1,000 3,000 Labor hours 500 500 2,000 Department direct costs $ 15,000 $ 38,500 $ 47,700 $ 30,000 University Printers estimates that the variable costs in the Personnel Department total $18,500 and in the Maintenance Department variable costs total $7,400 Avoidable fixed costs in the Personnel Department are $5,800 Required If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs (Do not round intermediate calculations )

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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

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				1,000		1,000		3,000
Labor-hours		500				500		2,000
Department direct costs	$	15,000	$	38,500	$	47,700	$	30,000

University Printers estimates that the variable costs in the Personnel Department total $18,500 and in the Maintenance Department variable costs total $7,400. Avoidable fixed costs in the Personnel Department are $5,800.

Required:

If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.)