Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...
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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 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 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.) X Answer is not complete. Assembly From: Service department costs Maintenance Cafeteria Total Cost Allocation To: Maintenance Cafeteria Machining $ 40,000 $ 32,000 (40,000) 8,000 20,000 X (40,000) 20,000 X $ 0 $ 0 $ 40,000 12,000 X 20,000 X $ 32,000
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