Let maintenance be X and Cafeteria be Z
By refering the table in question we get following equation:
X = 40,000 + 0.8 Z ..(1)
Z = 32000 + 0.2 X ..(2)
Substituting 2 in 1,
X = 40,000 + 0.8 (32000 + 0.2 X)
So, X = 78095
and Z = 47619
Maintenance | cafe | machining | assembly | total | |
OH before allocation (given) | 40000 | 32000 | 99000 | 64400 | 235400 |
Allocation: | |||||
Maintenance (2:5:3) on 78095 | -78095 | 15619 | 39048 | 23428 | --- |
cafe (8:1:1) | 38095 | -47619 | 4762 | 4762 | --- |
Total | NIL | NIL | 142810 | 92590 | 2354000 |
Please comment in case of any query regarding the solution.
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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: 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 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate...
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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: Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below] Caro Manufacturing has two production departments, Machining and Assembly, and two...
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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $110,000 67,000 51,000 38,000 0.2 0.7 0.5 0.1 0.3 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative...
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 $ 140,000 Assembly 68,000 Maintenance 52,000 — 0.3 0.3 0.4 Cafeteria 33,000 0.8 — 0.1 0.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $105,000 79,000 51,000 33,000 0.1 0.6 0.2 0.3 0.2 0.6 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative...
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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $ 100,000 75,000 52, eee 42,000 - 0.3 0.2 0.5 2.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)...