Question
Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and
Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) 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: Book Proportion of Services Used by Ask Department Machining Direct Costs $140,000 Maintenance Cafeteria Machining Assembly Print Assembly 72,000 Maintenance erences 49,000 0.2 0.5 0.3 Cafeteria 35,000 0.8 0.1 0.1 W Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) From: Maintenance Cost Allocation To: Cafeteria Machining Assembly Service department costs Maintenance Cafeteria Total < Prev 4 of 5 Next >
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