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 Proportion of Services Used by Direct Department Costs Maintenance Cofeteria Machining Assembly Machining $145,000 Assembly 69,000 Maintenance 47,000 0.2 8.6 0.2 Cafeteria 36,000 0.1 0.8 0.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounto.) Cost Allocation To: Cafeteria Machining Maintenance Assembly From Service department costs Maintenance Cafeteria Total $ os 05 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 Maintenance Cafeteria Machining Assembly Machining $140,000 Assembly 70,000 Maintenance 45,000 Cafeteria 32,500 0.1 Costs 0.2 0.5 0.1 0.3 Caro estimates that the variable costs in the Maintenance Department total $10,000, and in the Cafeteria variable costs total 516,000. Avoidable fixed costs in the Maintenance Department are $6,000. Required: if Caro outsources the Maintenance Department, what is the maximum it can pay an outside vendor without increasing total costs' (Do not round intermediate calculations.) Maximum Amount