Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help!! Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the

Please help!!
image text in transcribed
image text in transcribed
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 Maintenance Cafeteria Machining Assembly Machining $99,000 Assembly 64,400 Maintenance 40,000 Cafeteria 32,000 0.8 Costs 0.2 0.5 0.1 0.3 0.1 Assume that both Machining and Assembly work on just two jobs during the month of August CM-22 and CM-23. Costs are allocated to jobs based on machine hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows: Job CM-22: Machining 240 30 Machine hours Labor-hours Machine hours Labor-hours Assembly 30 60 30 270 Job CM-23: 20 Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM- 22? How much should be allocated to Job CM-23? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM- 22? How much should be allocated to Job CM 23? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Job CM-22 Job CM-23 Machining Assembly

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

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions

Question

What is the minimum number of nodes in a splay tree of height 9?

Answered: 1 week ago

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago

Question

What, if any, limitations exist for arbitrators?

Answered: 1 week ago

Question

What are the disadvantages of arbitration?

Answered: 1 week ago