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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 the
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion the various departments for the month of August follow service costs used by Proportion of Services Used by Machining Direct Costs Maintenance Cafeteria $1 82.000 Department Assembly Assembly 52.000 Maintenance 0.3 0.4 0.3 Cafeteria 39,000 0.6 0.2 0.2 Required: Use the reciprocal method allocate the service costs. (Matrix algebra not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Cost Allocation To: Maintenance Cafeteria Machining From: Assembly Service department costs 52.000 S 390,000 Maintenance Cafeteria 390,000 $ 0 $ S 52,000 $ Total
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