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

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Question

Accounting

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 $ 125,000
Assembly 81,000
Maintenance 54,000 0.1 0.7 0.2
Cafeteria 38,000 0.7 0.2 0.1

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

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