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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 $105,000 Assembly 79,000 Maintenance 45,000 0.1 0.5 0.4 Cafeteria 43,000 0.7 0.1 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Cost Allocation To: Cafeteria Machining Maintenance Assembly From: Service department costs Maintenance Cafeteria Total $ 0 $ 0 $ 0 $ 0
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