Service

University Printers has two service departments (Maintenance and Personnel) and two operat

University Printers has two service departments (Maintenance and Personnel) and two operat

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 − 1,000 1,000 3,000
Labor-hours 500 − 500 2,000
Department direct costs $ 15,000 $ 36,000 $ 45,000 $ 30,000

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Required:
Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (

From: Maintenance Personnel Printing Developing
Service department costs $ $ $ $
Maintenance
Personnel

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Total $ $ $ $

 

Roshan kumar 10-Nov-2017

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