Exercise 11-30 (Algo) 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:

Required:

Use the step method to allocate the service costs, using the following:

a. The order of allocation starts with Maintenance.

b. The allocations are made in the reverse order (starting with Cafeteria).

Exercise 11-30 (Algo) Cost Allocation: Step Method (LO 11-3) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Malntenance 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 $130,eee Assembly 71,000 Maintenance 49,600 0.3 2.3 Cafeteria 42,000 2.7 2.2 0.4 0.1 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 From Service department costs Maintenance Cafeteria Total Costs To Maintenance Cafeteria Machining Assembly $ 49,000 $ 42,000 $ 0 S (49,000) 0 $ 0 S 42,000 $ 01 S 0 Required A Required B > Exercise 11-30 (Algo) 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 Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $130,000 Assembly 71, eee Maintenance 49, eee 2.3 Cafeteria 42,000 2.7 0.2 0.1 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required 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.) To Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costs S 0 $ 0 $ 01 s 0