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Krimson & Kreme Manufacturing Company, Inc. has two production departments, Machining and Assembly, and two...

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Krimson & Kreme Manufacturing Company, Inc. 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 December are as follows: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $99,000 Assembling 64,000 Maintenance 40,000 | ... 0.2 0.5 0.3 Cafeteria 32,000 0.1 0.1 Compute the allocation of service department costs to producing departments using the direct method. 0.8

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