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Exercise 11-27 & 11-28 (Algo) (LO 11-2) [The following information applies to the questions displayed below) Caro Manufacturing has two production departments, Machining and Assembly,

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Exercise 11-27 & 11-28 (Algo) (LO 11-2) [The following information applies to the questions displayed below) 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 Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $185,898 Assembly 76,400 Maintenance 47,200 0.2 Cafeteria 38,000 0.8 8.1 0.2 0.6 0.1 Exercise 11-27 (Algo) 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 7 Exercise 11-27 & 11-28 (Algo) (LO 11-2) [The following information applies to the questions displayed below] 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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $105,800 76,400 47,200 38,000 2.2 0.8 2.6 2.1 0.2 8.1 Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and then to Jobs (LO 11-2) 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 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: Job CM-22: Machining 190 20 50 40 Machine-hours Labor-hours Machine-hours Labor-hours Assembly 2e 60 50 120 Job CM-23: 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-232 (Round "Department rate" to 2 decimal places and final answers to the nearest whole dollar) Job CM-22 Job CM-23 Machining Assembly

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