Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  

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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Costs $110, 000 67,000 51,000 38,000 0.2 0.5 0.3 Cafeteria 0.7 0.1 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Cost Allocation To: From: Maintenance Cafeteria Machining Assembly Service department costs Maintenance Cafeteria Total $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Orignial costs of service departments are as follows Maint... 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

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

5th edition

978-1259728877, 1259728870, 978-1259565403

More Books

Students also viewed these General Management questions