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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 Prop Cafeteria Services Direct Costs Maintenance $150,000 76.000 Assembly Department Machining Assembly Maintenance Cafeteria Machining 46,000 35,000 0.6 1 0 8 Required: Use the step method to allocate the service costs, using the following: a. The order allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To From Maintenance Cafeteria Machining Assembly Service department costs Maintenance Cafeteria 0 S 0 S 0 $ Total Costs 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 Cafeteria Assembly From Maintenance Machining Service department costs Cafeteria Maintenance 0 $ 0S 0 $ Total Costs
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