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 $
Assembly
Maintenance
Cafeteria 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:
Required:
Use the step method to allocate the service costs, using the following:
a The order of allocation starts with Maintenance.
b The allocations are made in the reverse order starting with Cafeteria
Complete this question by entering your answers in the tabs below.
Required A
The order of allocation starts with Maintenance. Negative amounts should be indicated by a minus sign. D
intermediate calculations.
