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 1,000 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 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) HINT: Setting up the simultaneous equations is much more important than solving them. If you have difficulty solving the simultaneous equations, just assume that the solutions are: S1 = $7,241 and S2 = $13,448. = = Cost Allocation To: Personnel Printing From: Maintenance Developing Service department costs Maintenance Personnel Total 0 0 0 0