Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer Part B Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department

Please answer Part B

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
Department Direct Costs Maintenance Cafeteria Machining Assembly
Machining $ 125,000
Assembly 67,000
Maintenance 53,000 0.2 0.6 0.2
Cafeteria 42,000 0.7 0.1 0.2

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).

image text in transcribed

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 indicate sign. Do not round intermediate calculations.) To Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costs S 0 S 0 S 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Selected Materials From Managerial Accounting

Authors: Ray H. Garrison

12th Edition

0077331559, 978-0077331559

More Books

Students also viewed these Accounting questions

Question

1. Explain the 2nd world war. 2. Who is the father of history?

Answered: 1 week ago

Question

6. Have you used solid reasoning in your argument?

Answered: 1 week ago