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# University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....

## Question

###### University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....

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 \$ 5,000 \$ 12,000 \$ 15,000 \$ 10,000

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.)

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