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Exercise 11-27 & 11-28 (Algo) (LO 11-2)

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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
Department	Direct Costs			Maintenance		Cafeteria		Machining		Assembly
Machining	$	90,000
Assembly		58,400
Maintenance		36,400				0.2		0.5		0.3
Cafeteria		29,000		0.6				0.2		0.2

Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2)

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:

		Machining		Assembly
Job CM-22:	Machine-hours	170		50
	Labor-hours	50		30
Job CM-23:	Machine-hours	30		60
	Labor-hours	30		220

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? (Round "Department rate" to 2 decimal places and final answers to the nearest whole dollar.)

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