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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,
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 $89,000 56,400 35,200 28,000 0.2 0.5 0.3 0.1 0.8 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
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