Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-4)

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. Round your final answers to the nearest whole dollar amounts.)

3 Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) 7 points 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: eBook Proportion of Services Used by Print Maintenance Cafeteria Machining Assembly References Department Machining Assembly Maintenance Cafeteria Direct Costs $135,00 79, ees 48, eee 39, eee 0.2 0.5 9.1 0.3 2.1 8.8 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. Round your final answers to the nearest whole dollar amounts.) From: Cost Allocation To: Cafeteria Machining $ 39.000 Maintenance $ 48.000 Assembly Service department costs Maintenance Cafeteria Total $ 48.000 $ 39.000 $ 0 $ Mc Graw Hill