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Caro Manufacturing hes two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of
Caro Manufacturing hes 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: Maintenance Proportion of Services used by Cafeteria Machining Assembly Department Machining Assembly Mainterience Cafeteria Direct Costs $89.00 55.400 35,200 29 000 References Section Break Exercise 11-26 & 11-27 (LO 11-2) 1. value: 0.66 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.) Total Costs Machining Assembly Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows: Machining Assembly 20 Job CM-22: 320 20 40 Job CM-23: Machine-hours Labor-hours Machine-hours Labor-hours 60 A 30 300 Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places.) Job CM-22 Job CM-23 Machining Assembly
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