Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

			Proportion of Services Used by
Department	Direct Costs		Maintenance	Cafeteria	Machining	Assembly
Machining	$	120,000
Assembly		74,000
Maintenance		53,000	—	0.3	0.5	0.2
Cafeteria		40,000	0.6	—	0.2	0.2

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)

Solutions

Expert Solution

Overheads are allocated as per trial and error method under Reciprocal method

ekkarill92 answered 1 year ago

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