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I am having trouble figuring out the last part of this question. Please explain in detail so I know what I am doing wrong. Thank
I am having trouble figuring out the last part of this question. Please explain in detail so I know what I am doing wrong. Thank you.
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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $99,000 64,400 40,000 32,000 0.2 0.5 0.1 0.3 0.1 0.8 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). Answer is not complete. 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.) From Service department costs Cafeteria Maintenance Total Costs Cafeteria $ 32,000 (32,000) 0 $ 0 To Maintenance Machining $ 40,000 $ 0 25,600 3,200 (65,600) $ 0 $ 3,200 Assembly $ 0 3,200 $ 3,200Step by Step Solution
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