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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 division.

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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 division. The costs of operating the cafeteria are budgeted at $84.000 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 peok period requirements The Auto Divinion is responsible for 58% of the peak period requirements, and the Truck Division is responsible for the other 42% For June, the Auto Division estimated it would need 90.000 meals served, and the Truck Division estimated it would need 60,000 meals served However, due to unexpected layoffs of employees during the month only 60,000 meals were served to the Auto Division Another 60.000 meals were served to the Truck Division as planned The cafeteria's actual fixed costs for June totaled $89,000 and its actual meal costs totaled $67.000 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 each month to the divisions in proportion to the number of meals served to each division during the month On this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.) Stronne caretera are determined by peak period requirements. The Auto Division is responsible for 58% of the peak period requirements, and the Truck Division is responsible for the other 42% For June, the Auto Division estimated it would need 90,000 meals served, and the Truck Division estimated it would need 60.000 meals served. However, due to unexpected layoffs of employees during the month, only 60,000 meals were served to the Auto Division. Another 60,000 meals were served to the Truck Division as planned The cafeteria's actual fixed costs for June totaled $89.000 and its actual meal costs totaled 567000 Required: 1. How much cafeteria cost should be charged to each division for June 2. Assume the company follows the practice of allocating all cafeterla costs incurred each month to the divisions in proportion to me number of meals served to each division during the month on this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.) Auto Division Truck Division 1. Total cost charged 2. Total cost allocated

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