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 | 49,000 | — | 0.2 | 0.6 | 0.2 | ||||||
| Cafeteria | 38,000 | 0.7 | — | 0.2 | 0.1 | ||||||
Homework Answers
| Caro Manufacturing | |||||
| Step Down Method-Started with maintenance | |||||
| Maintenance | Cafeteria | Machining | Assembly | ||
| a) | Service Department Cost | $ 49,000.00 | $ 38,000.00 | ||
| Maintenance | $ -49,000.00 | $ 9,800.00 | $ 29,400.00 | $ 9,800.00 | |
| Cafeteria | $ -47,800.00 | $ 31,866.67 | $ 15,933.33 | ||
| Total Cost | $ - | $ - | $ 61,266.67 | $ 25,733.33 | |
| Working | |||||
| Maintenance | Cafeteria | Machining | Assembly | ||
| Service Department Cost | $ 49,000.00 | $ 38,000.00 | |||
| Maintenance | $ -49,000.00 | ($49000*.2) | ($49000*.6) | ($49000*.2) | |
| Cafeteria | $ -47,800.00 | ($47800)*(.2/(.2+.1) | ($47800)*(.1/(.2+.1) | ||
| Step Down Method-Started with Cafeteria | |||||
| b) | Cafeteria | Maintenance | Machining | Assembly | |
| Service Department Cost | $ 38,000.00 | $ 49,000.00 | |||
| Cafeteria | $ -38,000.00 | $ 26,600.00 | $ 7,600.00 | $ 3,800.00 | |
| Maintenance | $ -75,600.00 | $ 56,700.00 | $ 18,900.00 | ||
| Total Cost | $ - | $ - | $ 64,300.00 | $ 22,700.00 | |
| Working | |||||
| Cafeteria | Maintenance | Machining | Assembly | ||
| Service Department Cost | $ 38,000.00 | $ 49,000.00 | |||
| Cafeteria | $ -38,000.00 | ($38000*.7) | (38000*.2) | ($38000*.1) | |
| Maintenance | ($75600)*(.6/(.6+.2)) | ($75600)*(.2/(.6+.2)) | |||
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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....
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....
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 $135,000 66,000 45,000 42,000 0.2 0.5 0.2 0.3 0.1 0.7 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....
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 $135,000 75,000 53,000 42,000 0.3 0.4 0.3 0.2 0.6 0.2 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...
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 77,000 Maintenance 53,000 — 0.2 0.5 0.3 Cafeteria 38,000 0.6 — 0.2 0.2 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....
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 72,000 Maintenance 53,000 — 0.1 0.6 0.3 Cafeteria 33,000 0.8 — 0.1 0.1 Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining...
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 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....
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 $130,000 64,000 50,000 40,000 no 0.8 0.2 - 0.4 0.1 0.4 0.1 Required: Use the step method to allocate the service costs, using the following: a....
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: 0.76 points Proportion of Services Used by Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $130,000 72,000 46,000 41,000 eBook 0.1 0.2 Print 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....
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....
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 $ 150,000 Assembly 77,000 Maintenance 52,000 — 0.3 0.4 0.3 Cafeteria 35,000 0.8 — 0.1 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 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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $135,000 66,000 45,000 42,000 0.2 0.5 0.2 0.3 0.1 0.7 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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $135,000 75,000 53,000 42,000 0.3 0.4 0.3 0.2 0.6 0.2 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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $130,000 64,000 50,000 40,000 no 0.8 0.2 - 0.4 0.1 0.4 0.1 Required: Use the step method to allocate the service costs, using the following: a....
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: 0.76 points Proportion of Services Used by Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $130,000 72,000 46,000 41,000 eBook 0.1 0.2 Print 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 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...
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