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 calculations.)
Service department allocation
Maintenance | Cafeteria | Machining | Assembly | |
Service department cost | 40000 | 32000 | ||
Maintenance allocation | -40000 | 25000 | 15000 | |
Cafeteria allocation | -32000 | 16000 | 16000 | |
Total Cost | 0 | 0 | 41000 | 31000 |
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: Proportion of Services Used by Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct costs $ 99,000 64,400 40,000 32,000 0.2 0.5 0.1 - 0.3 0.1 0.8 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not...
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 $99,000 64,400 40,000 32,000 0.2 0.5 0.1 0.3 0.1 0.8 Required: Use the step method to allocate the service costs, using the following: a. The order...
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 $ 89,000 Assembly 56,400 Maintenance 35,200 — 0.2 0.5 0.3 Cafeteria 28,000 0.8 — 0.1 0.1 Required: Compute the allocation of service department costs to producing departments using the...
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 $ 96,000 Assembly 70,400 Maintenance 43,600 — 0.2 0.5 0.3 Cafeteria 35,000 0.6 — 0.2 0.2 Compute the allocation of service department costs to producing departments using the direct...
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 $ 105,000 Assembly 75,000 Maintenance 46,000 — 0.2 0.5 0.3 Cafeteria 35,000 0.7 — 0.1 0.2 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 Direct Maintenance Cafeteria Machining Assembly Department Machining Assembly Costs $120,000 80,000 48,000 35,000 Maintenance 0.2 0.5 0.3 Cafeteria 0.7 0.2 0.1 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 $ 120,000 Assembly 79,000 Maintenance 46,000 — 0.3 0.5 0.2 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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 135,000 Assembly 84,000 Maintenance 51,000 — 0.3 0.3 0.4 Cafeteria 36,000 0.7 — 0.2 0.1 Required: Use the step method to allocate the service costs, using the following:...
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 Machining Maintenance Cafeteria Assembly Department Machining Assembly Maintenance Costs $120,000 76,000 45,000 37,000 0.1 0.6 0.3 Cafeteria 0.6 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order...