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11-29) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion

11-29) 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:

Proportion of Services Used by
Department Direct Costs Maintenance Cafeteria Machining Assembly
Machining $ 120,000
Assembly 73,000
Maintenance 51,000 0.3 0.4 0.3
Cafeteria 38,000 0.7 0.1 0.2

Required:

Use the step method to allocate the service costs, using the following:

image text in transcribedimage text in transcribed

a. The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To Machining Maintenance $ 51,000$ From Cafeteria Assembly 38,000 15,300 Maintenance Cafeteria Total Costs 20,400 15,300 20,400 $ 51,000S 53,300$ 4,8005,300 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 Maintenance Machining Assembly Service department costs Cafeteria Maintenance Total Costs 0

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