Question

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 of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). References Complete this question by entering your answers in the tabs below. Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costs $

Answer 1

solution- The allocations are made in reverse Order ( Starting with cafeteria) TO cafeteria Maintenance Machining Assembly from - Service Department $46000 $46,000 - costs Cafeteria $141,000) $28,700 $4,100 $8,200 Maintenance $(14,700) $49,800 $24,900 Total costs . . $0 $0 $ 53,900 $33,100 Explanations Step Method - safeteria First! Cafeteria: Maintenance a $41,000 Xor = $28,700 .: Machining =$411000 x O-1 = $ hiloo .. Assembly $41.000 40.2=$. 8,200 A

Maintenance - $ 16.000 Direct CASES +$28,700 Caletesici - $74,700 Matate 6.6 rachining 0.6 to 3 10.6 tone X $74,700 . .= $49,800 Assembly = 0.3 x8thiroo ':06 16:3 1- $24,900

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