Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 Direct Department Costa Maintenance Cafeteria Machining Assembly Machining $140,000 Ansembly 84,000 Maintenance 52,000 0.3 0.4 Cafeteria 42,000 0.7 0.2 0.3 0.1 nces Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Cont Allocation To: Maintenance Cafeteria Machining 52,000 $ 42,000 $ 0 Assembly $ 0 From: Service department costs Maintenance Cafeteria Total $ 52.000 $ 42,000 $ 0 S 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

How do information bits differ from overhead bits?

Answered: 1 week ago