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:

Deparment	Direct Cost	Maintenance	Cafeteria	Machining	Assembly
machining	110,000
Assembly	71,000
Maintenance	53,000		0.2	0.4	0.4
Cafeteria	36,0000	0.7		0.1	0.2

a. The order of allocation starts with Maintenance

b. The allocations are made in the reverse order (starting with Cafeteria).

From	Maintenance	Cafeteria	Maching	Assembly
Service Department Cost
Maintenance
Cafeteria
Total Cost