Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Soved Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion

image text in transcribed
image text in transcribed
Soved 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 Uwed by Department Machining Assembly Maintenance Cafeteria Machining Assembly Maintenance Cafeteria Direct Costs $110,000 77,000 50,000 36,000 0.2 0.6 0.2 0.2 0.2 0.6 ces Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations.) To Maintenance Cafeteria Machining Assembly $ 50,000 $ 36,000 $ os (50,000) From Service department costs Maintenance Cafeteria Total Costs 0 0 $ 0 $ 36,000 $ 0$ 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 servien Uned by Direct Department Conta Maintenance Cafeteria Mochining Ascembly Machining $110,000 Assembly 77,000 Maintenance 50,000 Cafeteria 36,000 0.2 0.2 0.2 0.6 Book 0.2 ferences Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Requitias The allocations are made in the reverse order (starting with Cafeteria), (Negative amounts should be Indicated by a minus sign. Do not round Intermediate calculations.) Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costa $ 0$ os 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Eco Management The Elmwood Guide To Ecological Auditing And Sustainable Business

Authors: Ernest Callenbach, Fritjof Capra, Lenore Goldman, Rudiger Lutz

1st Edition

1881052273, 978-1881052272

More Books

Students also viewed these Accounting questions

Question

Why is malware like SUPERNOVA so hard to spot on a network?

Answered: 1 week ago

Question

sharing of non-material benefits such as time and affection;

Answered: 1 week ago