Question: Please help! Using the Direct Method Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for
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 $99,000 Assembly 64,400 Maintenance 40,000 0.2 0.5 0.3 Cafeteria 32,000 0.8 0.1 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Total Costs Machining Assembly
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
