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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Costs $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.2 0.7 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).

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Homework: Cost Management and Allocation Assignment
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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
Direct
Costs
Department
Machining
Assembly
Maintenance
Cafeteria
Maintenance
Cafeteria
Machining Assembly
$120,000
76,000
54,000
37,000
0.2
0.6
0.2
0.7
0.2
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 A
Required B
The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round
intermediate calculations.)
To
Cafeteria
Machining
Assembly
From
Maintenance
Transcribed Image Text:A ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 5 - Homework: Cost Management and Allocatic :Cost Management and Allocation Assignm... 6 Saved Help 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 Costs Department Machining Assembly Maintenance Cafeteria Maintenance Cafeteria Machining Assembly $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.7 0.2 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 A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To Cafeteria Machining Assembly From Maintenance
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