[The following information applies to the questions displayed below.] Caro Manufacturing has two production departments,...
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[The following information applies to the questions displayed below.]
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
$
89,000
Assembly
56,400
Maintenance
35,200
0.2
0.5
0.3
Cafeteria
28,000
0.8
0.1
0.1
1.
value: 3.00 points
Required information
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
Total Costs
Machining
Assembly
Answer & Explanation
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