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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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $115,888 84,080 54.689 41,080 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 $ 54,000 Cost Allocation To: Cafeteria Machining $ 41,000 $ Assembly $ 0 From: Service department costs Maintenance Cafeteria Total $ 54,000 $ 41,000 $ 0 $ 0
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