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Caro Manufacturing has two production departments, Machining and Assmbly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of
Caro Manufacturing has two production departments, Machining and Assmbly, 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: of Services Used b Department Direct Costs Maintenance Cafeteria Machining Assembly Machining Assembly Maintenance Cafeteria $130,000 85.000 45.000 35.000 0.1 0.5 0.2 0.4 0.7 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.) Cost Allocation To From Maintenance Cafeteria Machining Assembly Service department costs45,035,000 Maintenance Cafeteria Total S 45,000$35,000
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