Required information[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 variousdepartments for the month of August follow:DepartmentMachiningAssemblyMaintenanceCafeteriaJob CM-22:DirectCosts$92,00062,40038,80031,000Job CM-23:Proportion of Services Used byMaintenance. Cafeteria MachiningMachine-hoursLabor-hours.Machine-hours.Labor-hours0.8Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocatedto jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in eachdepartment are as follows:Machining3005030200.2Assembly403620150Prev0.60.1SAssembly0.20.12 of 13 HHNext Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocatedto jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in eachdepartment are as follows:Job CM-22: Machine-hoursJob CM-23:Labor-hoursMachine-hoursLabor-hoursMachiningAssemblyMachining300503020Job CM-22Assembly4636Required:How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places and final answers to the nearestwhole dollar.)Job CM-2320,150

Lets understand the basics.Service department costs are needed to allocate to production department…

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 $92,000 62, 400 38,800 31,000 Proportion of Services Used by Maintenance Cafeteria Machining 0.8 0.2 0.6 0.1 Assembly 0.2 0.1 Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are alloca to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in e department are as follows:

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 $92,000 62, 400 38,800 31,000 Proportion of Services Used by Maintenance Cafeteria Machining 0.8 0.2 0.6 0.1 Assembly 0.2 0.1 Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are alloca to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in e department are as follows:

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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Required information [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: Department Machining Assembly Maintenance Cafeteria. Machining Assembly Direct Costs $92,000 62,400 38,800 31,000 Total Costs Proportion of Services Used by Maintenance Cafeteria. Machining 0.8 0.2 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Prev 0.6 0.1 1 2 Assembly of 13 0.2 0.1 # www Next > Bi G
Required Information [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: Department Machining Assembly Maintenance Cafeterial Machining Assembly Direct Costs $100,000 Total Costs 66,400 41,200 33,000 Proportion of Services Used by Maintenance Cafeteria Machining 0.6 0.2 0.5 0.2 Assembly Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round Intermediate calculations.) 0.3 0.2
Required Information [The following information applies to the questions displayed below.] 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 Fabricating Finishing Direct Costs $ 143,600 Total Allocated Costs 104, 200 44,700 83,500 Repair 0 0.8 Proportion of Services Used by Quality Control 0.2 8 Fabricating Finishing 0.5 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. 0.3 0.1
[The following information applies to the questions displayed beiow.) 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 Maintenance Cafeteria Machining Assembly Depantment Machining Assembly $97,000 72,400 44, 800 36,000 Maintenance 0.2 0.5 0.3 Cafeteria 0.8 0.1 0.1 Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labo. and machine-hours worked in each department are as follows: Machining 360 Assembly Job CM-22: Machine-hours 60 Labor-hours Machine-hours Labor-hours se 40 30 Job CM-23: 20 30 340 Required: How much of the service department costs allocated to Machining…
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! Required Information [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: Department Machining Assembly Maintenance Cafeteria Direct Costs $100,000 66,400 41, 200 33,000 Job CM-22: Machine-hours Job CM-23: Labor-hours Machine-hours Labor-hours Machining Assembly Job CM-22 Maintenance Cafeteria 0.6 Machining 150 40 40 30 Proportion of Services Used by Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows: Job CM-23 0.2 Assembly 40 30 20 220 Machining 0.5 0.2 Assembly Required: How much…
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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 Direct Costs Repair $ 147,600 112, 200 48,300 90,300 Required A Required B Required: Use the step method to allocate the service costs, using the following: 0 0.6 From: Proportion of Services Used by Quality Control Fabricating a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Repair Quality control Total costs allocated Complete this question by entering your answers in the tabs below. Repair 0.2 0 Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted should be…
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