Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.

image text in transcribed
image text in transcribed
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 service Used by Direct Department Costa Maintenance Cafeteria Machining Assembly Machining $115,000 Assembly 64,000 Maintenance 54,000 0.2 Cafeteria 39,000 0.2 0.1 0.3 0.5 0.7 cs 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.) Maintenance Cafeteria Machining Assembly From Service department costs Maintenance Cafeteria Total Costs $ 0 $ 015 0 $ Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria LE Coats $115.000 64,000 54,000 39,000 0.3 0.5 0.2 0.2 0.1 0.7 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.) Cafeteria Maintenanco Machining Assembly From Service department costs Cafeteria Maintenance Total Costs $ 0 0 $ 0 $ 0 $ (Required A Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

10th edition

978-0078025624

Students also viewed these Accounting questions