Question
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 | |||||||||||
Department | Direct Costs | Maintenance | Cafeteria | Machining | Assembly | ||||||
Machining | $ | 104,000 | |||||||||
Assembly | 74,400 | ||||||||||
Maintenance | 46,000 | 0.2 | 0.5 | 0.3 | |||||||
Cafeteria | 37,000 | 0.6 | 0.2 | 0.2 | |||||||
References
Section BreakExercise 11-26 & 11-27 (LO 11-2)
1.
value: 3.00 points
Required information
Exercise 11-26 Cost Allocation: Direct Method (LO 11-2)
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
Please show work
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