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
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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