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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 Cafeteria Machining Maintenance Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $125,000 67,000 53,000 42,000 0.2 0.7 8.6 8.1 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 Maintenance $ Service department costs Maintenance 53,000 (53,000) Cafeteria Machining Assembly 42,000 $ 125,000 $ 67,000 X 10,600 31,800 10,600 (52,600) 5,260 x 10,520 X $ 0 $ 162,060 $ 88,120 Cafeteria Total Costs 0 Answer is not complete. Complete this question by entering your answers in the tabs below. 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.) To From Cafeteria Maintenance Machining Assembly Service department costs Cafeteria Maintenance Total Costs S 0 $ 0 $ 0 $ 0
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