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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 Cafeterial Direct Costs $120,000 78,000 46,000 42,000 Proportion of Services Used by Maintenance Cafeteria Machining Assembly Required A Required B 0.7 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). From Service department costs Maintenance Cafeteria Total Costs Complete this question by entering your answers in the tabs below. 0.1 Maintenance $ The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 $ Cafeteria 0.6 0.2 Required A To 0.3 0.1 Machining 0 $ Assembly 0 $ Required B 0

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 Cafeterial Direct Costs $120,000 78,000 46,000 42,000 Proportion of Services Used by Maintenance Cafeteria Machining Assembly Required A Required B 0.7 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). From Service department costs Maintenance Cafeteria Total Costs Complete this question by entering your answers in the tabs below. 0.1 Maintenance $ The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 $ Cafeteria 0.6 0.2 Required A To 0.3 0.1 Machining 0 $ Assembly 0 $ Required B 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $120,000 78,000 46,000 42,000 Required A Required B Proportion of Services Used by Maintenance Cafeteria Machining Assembly From Service department costs Maintenance Cafeteria Total Costs 0.7 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). Show Transcribed Text Complete this question by entering your answers in the tabs below. 0.1 Maintenance $ - The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 $ 0.6 0.2 To Cafeteria Machining < Required A 0.3 0.1 0 $ Assembly 0 $ Required B > 0 Reuired A: The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) fill in the table above Required B: The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) fill in the table above
Transcribed Image Text: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 $120,000 78,000 46,000 42,000 Required A Required B Proportion of Services Used by Maintenance Cafeteria Machining Assembly From Service department costs Maintenance Cafeteria Total Costs 0.7 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). Show Transcribed Text Complete this question by entering your answers in the tabs below. 0.1 Maintenance $ - The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 0 $ 0.6 0.2 To Cafeteria Machining < Required A 0.3 0.1 0 $ Assembly 0 $ Required B > 0 Reuired A: The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) fill in the table above Required B: The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) fill in the table above
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