Answer Happy

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 $103,000 72,400 44,800 36,000 Total Costs Proportion of Services Used by Maintenance Cafeteria Machining 0.6 0.2 Assembly Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) 0.2 0.2

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 Coats $103,000 72,400 44,800 36,000 Job CM-22: Machine-hours Labor-hours Job CM-23: Machine-hours Labor-hours Machining Proportion of Services Used by Maintenance Cafeteria Machining Job CM-22 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: 0.6 Machining 290 20 30 40 Job CM-23 0.2 Assembly 40 30 50 370 0.6 0.2 Assembly 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.) 0.2 0.2