USE Direct Method

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					1,700			1,700			3,400
Labor-hours		700						700			2,800
Department direct costs	$	4,800		$	14,800		$	16,000		$	13,100

Required:

Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated Maintenance Personnel Printing $ 4,800 $ 14,800 (4,800) (14,800) $ 0 $ 0 $ 0 $ 0