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[The following information applies to the questions displayed below.] Caro Manufacturing has two...

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Accounting

[The following information applies to the questions displayed below.]

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 $ 99,000
Assembly 64,400
Maintenance 40,000 0.2 0.5 0.3
Cafeteria 32,000 0.8 0.1 0.1

1.

value: 20.00 points

Required information

Required:

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

Total Costs
Machining
Assembly

Answer & Explanation Solved by verified expert
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