[ The following information applies to the questions displayed below. ] Caro Man

Question

[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:

1.

value:
20.00 points

Required information

Required:

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 99,000 Assembly 64,400 Maintenance 40,000 — 0.2 0.5 0.3 Cafeteria 32,000 0.8 — 0.1 0.1

Explanation / Answer

Machining Assembly Maintenance Cafeteria Direct Costs 99000 64400 40000 32000 Costs allocated: Maintenance 25000 15000 -40000 Cafeteria 16000 16000 -32000 Total costs 140000 95400 0 0

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