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 1,000 Developing 3,000 2,000 $10,000 Machine-hours 1,000 Labor-hours 500 500 Department direct costs $ 5,000 $12,000 $15,000 University Printers estimates that the variable costs in the Personnel Department total $7,000 and in the Maintenance Department variable costs total $3,000. Avoidable fixed costs in the Personnel Department are $4,000. 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.) Maximum Amount

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 1,600 Machine-hours Labor-hours Department direct costs 500 $5,000 Printing 1,000 500 $15,000 Developing 3,000 2,000 $10,000 $12,800 University Printers estimates that the variable costs in the Personnel Department total $7.000 and in the Maintenance Department variable costs total $3,000. Avoidable fixed costs in the Personnel Department are $4.000. Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay on outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount University Printers estimates that the variable costs in the Personnel Department total $7.000 and in the Maintenance Department variable costs total $3,000 Avoidable fixed costs in the Personnel Department are $4,000 Required: University Printers outsources the Personnel Department functions, what is the maximum it can pay on outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount