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
Department	Direct Costs			Maintenance		Cafeteria		Machining		Assembly
Machining	$	120,000
Assembly		74,000
Maintenance		53,000				0.3		0.5		0.2
Cafeteria		40,000		0.6				0.2		0.2

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)