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O Required information [The following information applies to the questions displayed below.) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments,
O Required information [The following information applies to the questions displayed below.) 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 $104,000 Assembly 74,400 Maintenance 46,000 Cafeteria 37,000 0.2 0.2 0.5 0.3 0.2 0.6 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Total Costs Machining $ 151,250 Assembly $ 110,150
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