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 ? 455 455 2,590
Labor-hours 315 ? 294 1,491
Department direct cost 11,000 $23,000 $25,000 $23,000
Required: Allocate the service department costs using the reciprocal method. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.

Machine hour percentages -Allocation of Maintenance Costs  

455 + 455 + 2,590 = 3,500 total machine hrs

Personnel = 455 / 3,500 = 13%

Printing  = 455 / 3,500 = 13%

Developing = 2,590 / 3,500 = 74%

Labor hr. percentages--Allocation of Personnel costs  

315 + 294 + 1,491 = 2,100 total labor hrs.    

Maintenance = 315 / 2,100 = 15%

Printing  = 294 / 2,100 = 14%

Developing = 1,491 / 2,100 = 71%

                                                                   Service

                                     Maintenance   Personnel   Printing    Developing

Costs before allocation          11,000    23,000       25,000       23,000

Allocate maintenance costs-11,000      1,430          1,430          8,140

                                                     0        24,430

Allocate personnel costs       3664.5      -24430        3420.2       17345.3

Allocate maintenance costs-3664.5      476.39        476.39         2711.73

Allocate personnel costs         71.46       -476.39          66.69       338.24

Allocate maintenance costs     -71.46       9.29              9.29        52.88

Allocate personnel costs         1.39           -9.29           1.3006      6.5959

Allocate maintenance costs    -1.39             0                 0                1.39

Total costs                                0.00           0.00          30403.87  51596.13

Workings

Allocate maintenance costs

Personnel = (11000 * 13%) = 1430

Printing = (11000 * 13%) = 1430

Developing =  (11000 * 74%) =  8140

Allocate personnel costs

Maintenance = 24430 * 15% =

Printing = (24430 * 14%) =

Developing = (24430 * 71%)  =

Allocate maintenance costs

Personnel = (3664.5 * 13%)

Printing = (3664.5 * 13%)

Developing = (3664.5 * 74%)

Allocate personnel costs

Maintenance = (476.39 * 15%)  

Printing = (476.39 * 14%)

Developing = (476.39 * 71%)

Allocate maintenance costs

Personnel = (71.46 * 13%)

Printing = (71.46 * 13%)

Developing = (71.46 * 74%)

Allocate personnel costs

Maintenance= (9.29 * 15%)

Printing = (9.29 * 14%)

Developing = (9.29 * 71%)

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;