Solution-Allocate service department costs to operating

Allocate service department costs to operating departments

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Reference no: EM132350699

Question - 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	-	1,200	1,200	3,600
Labor-hours	650	-	650	2,600
Department direct costs	$3,000	$13,000	$14,400	$11,500

Required - Use the direct method to allocate these service department costs to the operating departments.

Reference no: EM132350699

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Allocate service department costs to operating departments

Reference no: EM132350699

Reference no: EM132350699

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