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Required Information Exercise 11-27 & 11-28 (Algo) (LO 11-2) [The following information applies to the questions displayed below.] Caro Manufacturing has two production departments,
Required Information Exercise 11-27 & 11-28 (Algo) (LO 11-2) [The following information applies to the questions displayed below.] 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 Machining Direct Costs $96,000 Maintenance Cafeteria Machining Assembly Assembly 70,400 Maintenance 43,600 0.2 0.5 0.3 Cafeteria 35,000 8.6 0.2 0.2 Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-2) Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round Intermediate calculations.) Total Costs Machining Assembly
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