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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 Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $99,000 Assembly 64,400 Maintenance 40,000 0.2 0.5 0.3 Cafeteria 32,000 8.8 0.1 0.1 Exercise 11-28 (Static) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2) Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine- hours worked in each department are as follows: Assembly 30 Job CM-22: Machine-hours Labor-hours Machining 240 30 60 Job CM-23: Machine-hours. Labor-hours 30 30 20 270 Required information Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine- hours worked in each department are as follows: Machining Assembly Job CM-22: Machine-hours Labor-hours 240 30 30 60 Job CM-23: Machine-hours. Labor-hours 30 30 20 270 Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Job CM-22 Job CM-23 Machining Assembly $ $ 124,445 $ 20,975 17,345 $ 68,146
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