Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Direct Costs S99,000 64,400 40,000 32,000 Maintenance Cafeteria Machining Assembly Machining Maintenance Cafeteria 0.2 0.5 0.3 0.8 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 3 Answer is complete but not entirely correct. To From Service department costs 40,000 32,000 78,09515,619 39.048 23,428 ,7624,762 0 43,810 28,190 38,09547.619)4.782 Cafeteria Total Costs b. The allocations are made in the reverse order (starting with Cafeteria). (Nogative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 3Answer is not complete. To From Service department costs Cafeteria Maintenance Total Costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started