Required information Exercise 11-27 & 11-28 (Algo) (LO 11-2) Skip to question [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: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 94,000 Assembly 66,400 Maintenance 41,200 — 0.2 0.6 0.2 Cafeteria 33,000 0.8 — 0.1 0.1 Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2) 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: Machining Assembly Job CM-22: Machine-hours 340 60 Labor-hours 50 20 Job CM-23: Machine-hours 60 30 Labor-hours 40 230 Required: 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 nearest whole dollar.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information

Exercise 11-27 & 11-28 (Algo) (LO 11-2)

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[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:

				Proportion of Services Used by
Department	Direct Costs	Maintenance	Cafeteria	Machining	Assembly
Machining	$	94,000
Assembly		66,400
Maintenance		41,200		—		0.2	0.6	0.2
Cafeteria		33,000		0.8		—	0.1	0.1

Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2)

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:

		Machining	Assembly
Job CM-22:	Machine-hours	340		60
	Labor-hours	50		20
Job CM-23:	Machine-hours	60		30
	Labor-hours	40		230

Required:
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 nearest whole dollar.)

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