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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 Cafeteria.
[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 Direct Department Costs Maintenance Machining Assembly Machining $105,000 Assembly 76,400 Maintenance 47,200 0.2 0.6 0.2 Cafeteria 38,000 0.8 0.1 0.1 Cafeteria 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: Job CM-22: Machine-hours Labor-hours Job CM-231 Machine-hours Labor-hours Machining 190 20 50 40 Assembly 20 60 50 120 Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM- 22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places and final answers to the nearest whole dollar.) Job CM-22 Job CM-23 Machining Assembly
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