Exercise 11-29 Cost Allocation: Step Method (LO 11-3) 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 Department Machining Assembly Maintenance Cafeteria Direct Costs Maintenance Cafeteria Machining Assembly $110,000 72,000 53,000 43,000 0.3 0.2 0.2 0.5 0.7 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) From Maintenance Cafeteria Machining Assembly Service department costs Maintenance Cafeteria Total Costs 26,500 17,900 44,400 S 15,900 35,800 51,700 10,600 10,600 S b. The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 From Cafeteria Maintenance Machining Assembly Service department costs Cafeteria Maintenance Total Costs