Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

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Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafet

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Answer 1

Answer #1

a) Step method

	Maintenance	Cafeteria	Machining	Assembly
Service department cost	45000	37000
Allocation of maintenance	-45000	4500	27000	13500
Allocation of Cafeteria		-41500	20750	20750
Total			47750	34250

b) Step method

	Cafeteria	Maintenance	Machining	Assembly
Service department cost	37000	45000
Allocation of Cafeteria	-37000	22200	7400	7400
Allocation of Maintenance		-67200	44800	22400
Total			52200	29800

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Answer 2

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