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	Direct Costs	Maintenance	Cafeteria	Machining	Assembly
Machining	$	99,000
Assembly		64,400
Maintenance		40,000				0.2		0.5		0.3
Cafeteria		32,000		0.8				0.1		0.1

1. value:

20.00 points Required information

Required:

Compute the allocation of service department costs to producing departments using the direct method.(Do not round intermediate calculations.)

Total Costs:

Machining:

Assembly:

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

	Maintenance	Personnel	Printing	Developing
Machine-hours					1,000			1,000			3,000
Labor-hours		500						500			2,000
Department direct costs	$	5,000		$	12,000		$	15,000		$	10,000

Required:

Use the direct method to allocate these service department costs to the operating departments.(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.:

	Using Department
Supplying department	Administration	Factory support	Fabrication	Assembly	Finishing
Administration					0.40			0.30			0.20			0.10
Factory support		0.10						0.20			0.15			0.55
Direct cost	$	480,000		$	1,250,000		$	1,560,000		$	268,000		$	238,000

Required:

Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation.(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $40,000 after incurring additional processing costs of $12,000. The copper is sold for $80,000 after additional processing costs of $10,000, and the manganese yield sells for $60,000 but requires additional processing costs of $18,000. The joint costs of processing the raw ore, including the cost of mining, are $100,000 per batch.

Required:

Use the estimated net realizable value method to allocate the joint processing costs.

Lead Copper Manganese

Approximate Sales Volume at Split-Off:

Percent of Total Sales Volume at Split-Off:

Cost Allocation: