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Homework answers / question archive / Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria
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 Direct Costs Proportion of Services Used by Maintenance Cafeteria Machining Assembly Machining $102,000 Assembly 70,400 Maintenance 43,600 0.2 0.5 0.3 Cafeteria 35,000 0.8 0.1 0.1
Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-2)
Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
Machining
Assembly