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:

Required

Compute the allocation of service department costs to producing departments using the direct method.

Transcribed Image Text:

Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining.... $99,000 Assembly....64,400 Maintenance Cafeteria.. 0,000 .32,000 0.5 0.1 0.3 0.1 0.2 0.8