Caro Manufacturing has two production departments, Machining andAssembly, and two service departments, Maintenance and Cafeteria.Direct costs for each department and the proportion of servicecosts used by the various departments for the month of Augustfollow:
| | Proportion of Services Used By | | | |
| Department | Direct Costs | Maintenance | Cafeteria | Machining | Assembly |
| Machining | 101,000.00 | | | | |
| Assembly | 68,400.00 | | | | |
| Maintenance | 42,400.00 | 0 | 0.2 | 0.6 | 0.2 |
| Cafeteria | 34,000.00 | 0.6 | 0 | 0.2 | 0.2 |
1)
Compute the allocation of service department costs to producingdepartments using the direct method. (Do not roundintermediate calculations.)
Machining
Assembly
2) Assume that both Machining and Assembly work on just two jobsduring the month of August: CM-22 and CM-23. Costs are allocated tojobs based on machine-hours in Machining and labor-hours inAssembly. The number of labor- and machine-hours worked in eachdepartment are as follows:
| | Machining | Assembly |
| Job CM-22: | Machine-hours | 180 | | 40 | |
| Labor-hours | 50 | | 20 | |
| Job CM-23: | Machine-hours | 40 | | 20 | |
| Labor-hours | 30 | | 240 | |
|
How much of the service department costs allocated to Machiningand 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.)
CM-22 CM-23
Machining:
Assembly:
