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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: Proportion of Services Used by Direct Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Costs $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.2 0.7 0.1 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).

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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Costs $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.2 0.7 0.1 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).

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 10E: Support department cost allocation comparison Refer to your answers to Exercises 7-9. Compare the...
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A ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 5 - Homework: Cost Management and Allocatic :Cost Management and Allocation Assignm... 6 Saved Help 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 Department Machining Assembly Maintenance Cafeteria Maintenance Cafeteria Machining Assembly $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.7 0.2 0.1 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). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To Cafeteria Machining Assembly From Maintenance
Transcribed Image Text:A ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 5 - Homework: Cost Management and Allocatic :Cost Management and Allocation Assignm... 6 Saved Help 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 Department Machining Assembly Maintenance Cafeteria Maintenance Cafeteria Machining Assembly $120,000 76,000 54,000 37,000 0.2 0.6 0.2 0.7 0.2 0.1 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). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To Cafeteria Machining Assembly From Maintenance
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