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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
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 Cafeteria Machining Maintenance Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $115.000 69,000 53,000 41,000 0.3 0.3 0.1 0.4 0.2 0.7 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.) Cost Allocation To: Cafeteria Machining From: Maintenance Assembly Service department costs Maintenance Cafeteria Total $ 0 $ 0 $ 0 $ 0
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