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Source: Problem 6-9, Managerial Accounting, Asia Global Edition, 2e by Garisson, Noreen, Brewer, Cheng, Yuen

Sharp Motor Company has two operating divisions- an Auto Division and Truck Division. The company has a cafeteria that serves the employee of both divisions. The cost pf operating the cafeteria are budgeted at $40,000 per month plus $3 per meals served. The company pays all the cost of the meals.

The fixed cost of the cafeteria is determined by peak-period requirements. The Auto Division is responsible for 65% and the Truck Division is responsible for the other 35%.

For June, the Auto Division estimated that it would need 35,000 meals served, and the Truck Division estimated that it would need 20,000 meals served. However, due to unexpected layoff of employees during the month, only 20,000 meals were served to the Auto Division. Another 20,000 meals were served to the Truck Division as planned.

Cost records in the cafeteria show that actual fixed cost for June totaled $42,000 and that actual meal cost totaled $128,000.

Required:

How much cafeteria cost should be charged to each division for June?