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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 1,400 1,400 4,200
Labor-hours 900 900 3,600
Department direct costs $ 6,000 $ 16,000 $ 17,500 $ 14,700

Required:

Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Maintenance Personnel Printing Developing
Service department costs
Maintenance
Personnel
Total costs allocated $0 $0 $0 $0

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