Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...
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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 Cafeteria Machining Maintenance Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $93,000 64,400 40,000 32,000 value: 10.00 points Required information Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows: Assembly Job CM-22: 30 Machining 310 60 20 Machine-hours Labor-hours Machine-hours Labor-hours Job CM-23: Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places.) Job CM-22 Job CM-23 Machining Assembly
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