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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
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 Department Machining Direct Costs $110,000 Maintenance Cafeteria Machining Assembly Assembly 83,000 Maintenance 51,000 0.3 0.5 0.2 Cafeteria 36,000 0.6 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) From Service department costs Maintenance Cafeteria Total Costs To Maintenance Cafeteria Machining Assembly 0 0 $ 0
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