Cost Allocation: Step Method

a.(starts with maintainence)

b.(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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $125,000 80,000 54,000 38,000 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.) Maintenance Cafeteria Machining Assembly From Service department costs Maintenance Cafeteria Total Costs 0 0 $ 0 $ 0 Required Required B > Complete this question by entering your answers in the tabs below. Required A Required B The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To Maintenance From Cafeteria Machining Assembly Service department costs Cafeteria Maintenance Total Costs $ 0 $ 0 $ 0 $ 0 ( Required A Required