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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:
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
Required information [The following information applies to the questions displayed below] 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 Machining Maintenance Cafeteria Assembly Department Machining Assembly Maintenance Costs $99,000 64,400 40,000 32, 00 0.2 e.5 0.3 Cafeteria 0.8 0.1 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Total Costs Machining AssemblyStep by Step Solution
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