Allocate the service department costs using the reciprocal

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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 Printing Developing
  Machine-hours

?


624


912


3,264
  Labor-hours

208


?


240


1,152
  Department direct costs
$ 11,000

$ 22,000

$ 34,000

$ 19,000

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Note: Due to rounding, the costs allocated to the various departments may not add up to the total service department costs being allocated.) (Do not round intermediate calculations. Round final answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)



Cost Allocation To:
  From: Maintenance Personnel Printing Developing
  Service department costs $     $     $     $    
  Maintenance                
  Personnel                
  



      Total $     $     $     $    
  




Reference no: EM13578312

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