Question: Exercise 11-27 & 11-28 (Static) (LO 11-2) [The following information applies to the questions displayed below.) Caro Manufacturing has two production departments, Machining and Assembly,



Exercise 11-27 & 11-28 (Static) (LO 11-2) [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 Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $99,000 64,400 40,000 32,000 0.2 0.5 0.1 0.3 0.1 0.8 Exercise 11-27 (Static) Cost Allocation: Direct Method (LO 11-2) 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: 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.) From Maintenance Cafeteria Machining Assembly Service department costs Maintenance Cafeteria Total Costs $ $ 0 $ $ 0 Required A Required B > 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 allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) From Cafeteria Maintenance Machining Assembly Service department costs Cafeteria Maintenance Total Costs $ $ $ $ 0 0 0 0
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