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: Proportion of Services Used by Direct Costs $99,000 64,400 40,000 32,000 Assembly Department Machining Assembly Maintenance Cafeteria Maintenance Cafeteria Machining 0.2 0.5 0.1 0.3 0.1 0.8 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Total Costs Machining Assembly
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: Proportion of Services Used by Direct Costs $99,000 64,400 40,000 32,000 Assembly Department Machining Assembly Maintenance Cafeteria Maintenance Cafeteria Machining 0.2 0.5 0.1 0.3 0.1 0.8 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Total Costs Machining Assembly
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 19E: Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally...
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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:
Proportion of Services Used by
Direct
Cafeteria
Department
Machining
Assembly
Maintenance
Cafeteria
Costs
Maintenance
Machining
Assembly
$99,000
64,400
40,000
32,000
0.2
0.5
0.1
0.3
0.1
0.8
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate
calculations.)
Total Costs
Machining
Assembly](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef18cb14-9a47-40a9-9006-9c9e041022ca%2F9664a4ae-6164-496f-a858-713306dc5007%2Fuzkyea_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:
Proportion of Services Used by
Direct
Cafeteria
Department
Machining
Assembly
Maintenance
Cafeteria
Costs
Maintenance
Machining
Assembly
$99,000
64,400
40,000
32,000
0.2
0.5
0.1
0.3
0.1
0.8
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate
calculations.)
Total Costs
Machining
Assembly
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