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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
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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
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