Question: Exercise 11-30 (Algo) Cost Allocation: Step Method (LO 11-3) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria.

Exercise 11-30 (Algo) Cost Allocation: Step Method (LO 11-3) 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 Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $100,000 Assembly 65,000 Maintenance 46,000 0.1 Cafeteria 35,000 11 0.3 0.6 0.2 9.7 es 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 Intermediate calculations.) To Maintenance Cafeteria Machining Assembly From Service department costs Maintenance Cafeteria Total Costs $ 0 $ 0$ $ Required B > Assembly Maintenance Cafeteria 65,000 46,000 35,000 0.1 0.7 0.6 0.2 0.3 @.1 ces 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 sign. Do not round intermediate calculations.) Cafeteria Maintenance Machining Assembly From Service department costs Cafeteria Maintenance Total Costs $ 0 $ 0 $ 05 0 BE
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
