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The following information applies to the questions displayed below. ] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and

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 $ 104,000
Assembly 74,400
Maintenance 46,000 0.2 0.5 0.3
Cafeteria 37,000 0.6 0.2 0.2

Exercise 11-26 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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