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 Direct Costs Maintenance Cafeteria Machining Assembly Machining $96,000 Assembly 70,400 Maintenance 43,600 0.2 0.5 0.3 Cafeteria 35,000 0.6 8.2 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: Machine-hours Labor-hours Machining Assembly Job CM-22: 320 60 50 20 Job CM-23: Machine-hours 48 50 Labor-hours 30 220