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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

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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 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 $150,000 Assembly 78,000 Maintenance 58, eee 8.1 0.7 0.2 Cafeteria 36,000 2.1 e.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.) To From Service department costs Maintenance Cafeteria Total Costs Maintenance Cafeteria Machining Assembly $ 0 (50,000) 5,000 35,000 10,000 0 (41,000) 13,667 27,333 $ (50,000 $ (36,000) $ 48.667 $ 37,333 Regen Required B > Required A Required 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.) Cafeteria From Service department costs Cafeteria Maintenance Total Costs To Maintenance Machining Assembly $ 50,000 S 0 3,600 7,200 58,489 16,711 0 s 50,000 $ 62,0895 23,911 5

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