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:  Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) 

(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Transcribed Image Text:

Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 130,000 Assembly 68,000 Maintenance 45,000 0.2 0.5 0.3 Cafeteria 41,000 0.7 0.2 0.1 Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 130,000 Assembly 68,000 Maintenance 45,000 0.2 0.5 0.3 Cafeteria 41,000 0.7 0.2 0.1

Answer rating: 100% (QA)

Service department cost Direct Cost Allocated Cost Maintenance ... View the full answer