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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

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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 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 1,400 Machine-hours Labor-hours Department direct costs Printing 1,400 900 $14,500 Developing 4,200 3,100 $11,700 900 $ 2,800 $12,800 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.) Printing Developing Maintenance Personnel $ 2,800 $ 12,800 (2,800) Service department costs Maintenance Personnel Total costs allocated $ 0 $ 12,800 $ 0 $ 0

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