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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 1,300 Machine-hours Labor-hours Department direct costs 900 $ 3,680 Printing 1,300 900 $15,200 Developing 3,900 3.109 $11,600 $13,600 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 Service department costs Maintenance Maintenance Personnel 3.600S 13.600 (3.600) Personnel Total costs allocated $ 0 $ 13,600

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