None Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance andCafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month ofAugust follow:Proportion of Services Used byDepartmentMachiningAssemblyDirectCosts$105,00067,000Maintenance CafeteriaMachiningAssemblyMaintenance45,0000.1Cafeteria40,0000.80.60.10.30.1SRequired: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 ARequired BThe order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round

Cost allocation is the process wherein the costs are identified and allocated to the appropriate…

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 Machining Direct Costs $105,000 Maintenance Cafeteria Machining Assembly Assembly 67,000 Maintenance 45,000 0.1 0.6 0.3 Cafeteria 40,000 0.8 0.1 0.1 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.

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 Machining Direct Costs $105,000 Maintenance Cafeteria Machining Assembly Assembly 67,000 Maintenance 45,000 0.1 0.6 0.3 Cafeteria 40,000 0.8 0.1 0.1 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.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8E: A manufacturing company has two service and two production departments. Building 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: Department Machining Assembly Maintenance Cafeteria Direct Costs $115,000 65,000 54,000 43,000 Required A Required B Proportion of Services Used by Machining Maintenance Cafeteria 0.7 From Service department costs Maintenance Cafeteria Total Costs 0.2 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). 0.5 0.1 Complete this question by entering your answers in the tabs below. Maintenance Cafeteria Assembly The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To 0.3 0.2 Machining…
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 Direct Cafeteria Department Machining Assembly Costs Maintenance Machining Assembly $150,000 72,000 52,000 42,000 Maintenance 0.3 0.4 0.3 Cafeteria 0.8 0.1 0.1 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: 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…
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Proportion of Services Used by Quality Direct Costs Repair Control Fabricating $ 148,600 114, 200 49,200 92,000 Required: Use the step method to allocate the service costs, using the following: From: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Quality control Complete this question by entering your answers in the tabs below. Repair Total costs allocated 8 0.8 S Required A Required B Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be…
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 $180,000 Assembly 65,000 Maintenance 35,000 — 0.2 0.5 0.3 Cafeteria 30,000 0.8 — 0.1 0.1 Caro estimates that the variable costs in the Maintenance Department total $11,000, and in the Cafeteria variable costs total $18,000. Avoidable fixed costs in the Maintenance Department are $10,000. Required: If Caro outsources the Maintenance Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount:
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control From: Service department costs Repair Quality control Total Direct Costs Repair $ 132,600 94,200 40,200 242,740 Proportion of Services Used by Quality Control 0 0.3 Repair 0.3 0 Fabricating Finishing Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Quality Control Cost Allocation To: 0.5 0.1 0.2 0.6 Fabricating Finishing
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 $145,000 Assembly 81,000 Maintenance 51,000 — 0.3 0.4 0.3 Cafeteria 36,000 0.8 — 0.1 0.1 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). A.) The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To FROM Maintenance Cafeteria Machining Assembly Service Dept. Costs Maintenance…
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 $ 140,000 Assembly 71,000 Maintenance 51,000 — 0.2 0.6 0.2 Cafeteria 36,000 0.6 — 0.2 0.2 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).