Can you show me the steps it takes to do a direct allocation

Can you show me the steps it takes to do a direct allocation based on the following criteria:

	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		$	10,00

Solution

Maintenance Personnel Printing Developing Service Department cost $                5,000 $              12,000 Maintenance allocation $               -5,000 $                1,250 $                3,750 Personnel allocation $            -12,000 $                2,400 $                9,600 $                       -   $                       -   $                3,650 $              13,350 Workings: Printing Developing Maintenance allocation $5,000 X [1,000 / (1,000 + 3,000)] $5,000 X [3,000 / (1,000 + 3,000)] $1,250 $3,750 Maintenance department cost is allocated in the ratio of Machine - hours between printing and developing. Personnel allocation $12,000 X [500 / (500 + 2,000)] $12,000 X [2,000 / (500 + 2,000)] $2,400 $9,600 Personnel department cost is allocated in the ratio of Labour - hours between printing and developing.