Cost Allocation: Direct Method (LO 11-2) 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 1,400 1.400 4.200 Labor-hours 900 900 3,600 Department direct costs $6,000 $16,000 $17,500 $14,700 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.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel location Total costs allocated $ 0 $ os 05 0
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