Problem 118-4 Service Department Charges [LO11-6] Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $78.000 per month plus $0.40 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 67% of the peak-period requirements, and the Truck Division is responsible for the other 33%. For June, the Auto Division estimated it would need 97,000 meals served, and the Truck Division estimated it would need 67.000 meals served. However, due to unexpected layoffs of employees during the month, only 67,000 meals were served to the Auto Division. Another 67,000 meals were served to the Truck Division as planned. ecords in the cafeteria show that actual fixed costs for June totaled $82,000 and actual meal costs totaled $71,60o. Required 1. How much cafeteria cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs incurred cach month to the divisions in proportion s served to each division during the month. On this basis, how much cost would be allocated to each division for June? (Round your intermediatelcalculations to 2 decimal places.) Auto Truck Division Divisio 1 Total cost charged s 79,060s 52,540 pe here to search 824 PM 2/2018