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University Printers has two service departments (Maintenance and Porsonnel) 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 Porsonnel) 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 printang Developing Machine-hour's 1,600 1.000 3.000 Labor-hours 500 See 2.000 Department direct costs $14,500 $36,50e $44, $30. University Printers estimates that the variable costs in the Personnel Department total 18,000 and in the Maintenance Department variable costs total 58.700 Avoldoble fixed costs in the Personnel Department are $5,200, Required: 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.) Maidmurt Amount

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