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Please solve both parts and show all work. Thanks. Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria.
Please solve both parts and show all work. Thanks.
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 $130,000 Assembly 76,000 Maintenance 46,000 0.6 0.3 Cafeteria 42,000 0.7 0.2 8.1 0.1 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). Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. D intermediate calculations.) To Maintenance Cafeteria Machining Assembly $ 46,000 $ 42,000 $ or s 0 From Service department costs Maintenance Cafeteria Total Costs $ 46,000 $ 42,000 $ 0 $ Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts shoul sign. Do not round intermediate calculations.) Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costs $ 0 $ 0 $ 0 $ 0 Step by Step Solution
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