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 $130,000 Assembly 80,000 Maintenance 46,000 0.2 0.6 0.2 Cafeteria 41,000 0.6 0.2 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.) Maintenance Cost Allocation To: Cafeteria Machining Assembly From: Service department costs Maintenance Cafeteria Total $ 0 $ 0 $ 0 $ 0 Problem 11-55 (Algo) Comparison of Allocation Methods (LO 11-2, 3, 4) BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of nun of transactions. A summary of BluStar operations follows. Administration Accounting 28 Employees Transactions Department direct costs Domestic 42 20,000 $930,000 35,000 $363,000 International 30 80,000 $3,780,000 $146,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal method. Complete this question by entering your answers in the tabs below. Required An Required B Required Allocate the cost of the service departments to the operating departments using the direct method. (Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign.) To Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost $ 0 $ 0 $ 0 $ 0 Required A Required B >