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:

Department

Direct Cost

Maintenance

Cafeteria

Machining

Assembly

Machining

99,000

Assembly

64,400

Cafeteria

40,000

0.2

0.5

0.3

Maintenance

32,000

0.8

0.1

0.1

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

Cost Allocation to:

Service Department Cost

Maintenance:

Cafeteria:

Total