[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 Proportion of Services Used by Maintenance Cafeteria 0.6 0.2 Machining 0.5 0.2 Assembly 0.3 0.2
[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 Proportion of Services Used by Maintenance Cafeteria 0.6 0.2 Machining 0.5 0.2 Assembly 0.3 0.2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b7abcd0-34a8-4fb1-bbfc-91ff83baf1be%2Fa00cbce9-84de-44b1-bf4b-545866201c40%2F2jrihp_processed.png&w=3840&q=75)
Transcribed Image Text: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
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