Exercise 11-27 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:

		Machining		Assembly
Job CM-22:	Machine-hours	240		30
	Labor-hours	30		60
Job CM-23:	Machine-hours	30		30
	Labor-hours	20		270

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? (Do not round intermediate calculations.)