[The following information applies to the questions displayed below.] Caro Manufacturing has two production departments,...
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[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 | $ | 89,000 | |||||||||
| Assembly | 56,400 | ||||||||||
| Maintenance | 35,200 | 0.2 | 0.5 | 0.3 | |||||||
| Cafeteria | 28,000 | 0.8 | 0.1 | 0.1 | |||||||
1.
value: 3.00 points
Required information
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
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