Question

In: Accounting

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

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
Department Direct Costs Maintenance Cafeteria Machining Assembly
Machining $ 108,000
Assembly 78,400
Maintenance 48,400 — 0.2 0.6 0.2
Cafeteria 39,000 0.8 — 0.1 0.1

Required:

Compute the allocation of service department costs to producing departments using the direct method.

Solutions

Expert Solution

Machining $           55,800.00
Assembly $           31,600.00

Working :

Maintenance Cafeteria Machining Assembly
Service Department Cost $            48,400.00 $           39,000.00 $                           -   $                     -  
Maintenance $           (48,400.00)

$             36,300.00

(48400*0.6/(0.6+0.2))

$      12,100.00

(48400*0.2/(0.6+0.2))
Cafeteria $          (39,000.00)

$             19,500.00

(39000*0.1/(0.1+0.1))

$      19,500.00

(39000*0.1/(0.1+0.1))
Total $            55,800.00 $      31,600.00

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 115,000 Assembly 80,000 Maintenance 49,000 — 0.3 0.4 0.3 Cafeteria 33,000 0.6 — 0.2 0.2 Required: Use the step method to allocate the service costs, using the following:...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 96,000 Assembly 70,400 Maintenance 43,600 — 0.2 0.5 0.3 Cafeteria 35,000 0.6 — 0.2 0.2 Assume that both Machining and Assembly work on just two jobs during the...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 125,000 Assembly 84,000 Maintenance 52,000 — 0.2 0.5 0.3 Cafeteria 33,000 0.6 — 0.2 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 105,000 Assembly 76,400 Maintenance 47,200 — 0.2 0.6 0.2 Cafeteria 38,000 0.8 — 0.1 0.1 Assume that both Machining and Assembly work on just two jobs during the...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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: Cost allocation to: Department direct cost Maintenance Cafeteria Machining Assembly Machining 140000 assembly 83000 maintenance 51000 ---- 0.1 0.5 0.4 cafeteria 35000 0.6 --- 0.2 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct 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: Use the step method to allocate the service costs, using the following:...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 100,000 Assembly 68,000 Maintenance 54,000 — 0.3 0.4 0.3 Cafeteria 41,000 0.6 — 0.2 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 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...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 120,000 Assembly 84,000 Maintenance 55,000 — 0.2 0.5 0.3 Cafeteria 42,000 0.7 — 0.2 0.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 120,000 Assembly 66,000 Maintenance 50,000 — 0.3 0.5 0.2 Cafeteria 42,000 0.7 — 0.2 0.1 Required: Use the step method to allocate the service costs, using the following:...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT