Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Direct Proportion of Services Used by Costs Maintenance Cafeteria Machining Assembly Machining $ 140,000 Assembly Maintenance 84,000 55,000 0.1 0.7 0.2 Cafeteria 38,000 0.7 0.1 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To From Service department costs $ Maintenance Maintenance 55,000 (55,000) Cafeteria Machining Assembly Cafeteria Total Costs $ 0 38,000 5,500 (43,500) 0 $ $ 0 $ 0 $ 0 < Required A Required B > Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Direct Proportion of Services Used by Costs Maintenance Cafeteria Machining Assembly Department Machining $ 140,000 Assembly Maintenance 84,000 55,000 0.1 0.7 0.2 Cafeteria 38,000 0.7 0.1 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To From Cafeteria Service department costs $ Cafeteria 38,000 (38,000) $ Maintenance 55,000 Machining Assembly $ 0 $ 0 Maintenance Total Costs $ 0 $ 55,000 0 0 < Required A Required B > Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Direct Proportion of Services Used by Costs Maintenance Cafeteria Machining Assembly Machining $ 140,000 Assembly Maintenance 84,000 55,000 0.1 0.7 0.2 Cafeteria 38,000 0.7 0.1 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To From Service department costs $ Maintenance Maintenance 55,000 (55,000) Cafeteria Machining Assembly Cafeteria Total Costs $ 0 38,000 5,500 (43,500) 0 $ $ 0 $ 0 $ 0 < Required A Required B > Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Direct Proportion of Services Used by Costs Maintenance Cafeteria Machining Assembly Department Machining $ 140,000 Assembly Maintenance 84,000 55,000 0.1 0.7 0.2 Cafeteria 38,000 0.7 0.1 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To From Cafeteria Service department costs $ Cafeteria 38,000 (38,000) $ Maintenance 55,000 Machining Assembly $ 0 $ 0 Maintenance Total Costs $ 0 $ 55,000 0 0 < Required A Required B >
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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