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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

Depapment Direct Costs Maintenance Cafeteria Machining Assembly

Machining $ 99,000

Assembly 64,400

Maintenance 40,000 0.2 0.5 0.3

Cafeteria 32,000 0.8 0.1 0.1

Requrired

Compute the allocation of services department cost to producing department using the direct methop

total
machinning
assembly

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