Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria Direct Costs $115,000 65,000 54,000 43,000 Required A Required B Proportion of Services Used by Machining Maintenance Cafeteria 0.7 From Service department costs Maintenance Cafeteria Total Costs 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. o. The allocations are made in the reverse order (starting with Cafeteria). 0.5 0.1 Complete this question by entering your answers in the tabs below. Maintenance Cafeteria Assembly The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To 0.3 0.2 Machining Assembly
Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria Direct Costs $115,000 65,000 54,000 43,000 Required A Required B Proportion of Services Used by Machining Maintenance Cafeteria 0.7 From Service department costs Maintenance Cafeteria Total Costs 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. o. The allocations are made in the reverse order (starting with Cafeteria). 0.5 0.1 Complete this question by entering your answers in the tabs below. Maintenance Cafeteria Assembly The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To 0.3 0.2 Machining Assembly
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...
Related questions
Question
![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:
Department
Machining
Assembly
Maintenance
Cafeteria
Direct
Costs
$115,000
65,000
54,000
43,000
Required A Required B
Proportion of Services Used by
Machining
Maintenance Cafeteria
0.7
From
Service department costs
Maintenance
Cafeteria
Total Costs
0.2
Required:
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Maintenance.
b. The allocations are made in the reverse order (starting with Cafeteria).
0.5
0.1
Complete this question by entering your answers in the tabs below.
Maintenance Cafeteria
Assembly
The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round
intermediate calculations.)
To
0.3
0.2
Machining
Assembly](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b7abcd0-34a8-4fb1-bbfc-91ff83baf1be%2Fc4ff505e-8bdb-44b6-b297-9e6eb0ad4dce%2Fu3y9c6_processed.png&w=3840&q=75)
Transcribed Image Text: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:
Department
Machining
Assembly
Maintenance
Cafeteria
Direct
Costs
$115,000
65,000
54,000
43,000
Required A Required B
Proportion of Services Used by
Machining
Maintenance Cafeteria
0.7
From
Service department costs
Maintenance
Cafeteria
Total Costs
0.2
Required:
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Maintenance.
b. The allocations are made in the reverse order (starting with Cafeteria).
0.5
0.1
Complete this question by entering your answers in the tabs below.
Maintenance Cafeteria
Assembly
The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round
intermediate calculations.)
To
0.3
0.2
Machining
Assembly
![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:
Department
Machining
Assembly
Maintenance
Cafeteria
Direct
Costs
$115,000
65,000
54,000
43,000
Required A Required B
Proportion of Services Used by
Machining
Maintenance Cafeteria
0.7
From
Service department costs
Cafeteria
Maintenance
Total Costs
Required:
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Maintenance.
b. The allocations are made in the reverse order (starting with Cafeteria).
0.2
Complete this question by entering your answers in the tabs below.
0.5
0.1
Cafeteria
Assembly
The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus
sign. Do not round intermediate calculations.)
To
0.3
0.2
Maintenance Machining Assembly](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b7abcd0-34a8-4fb1-bbfc-91ff83baf1be%2Fc4ff505e-8bdb-44b6-b297-9e6eb0ad4dce%2F9p933wg_processed.png&w=3840&q=75)
Transcribed Image Text: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:
Department
Machining
Assembly
Maintenance
Cafeteria
Direct
Costs
$115,000
65,000
54,000
43,000
Required A Required B
Proportion of Services Used by
Machining
Maintenance Cafeteria
0.7
From
Service department costs
Cafeteria
Maintenance
Total Costs
Required:
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Maintenance.
b. The allocations are made in the reverse order (starting with Cafeteria).
0.2
Complete this question by entering your answers in the tabs below.
0.5
0.1
Cafeteria
Assembly
The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus
sign. Do not round intermediate calculations.)
To
0.3
0.2
Maintenance Machining Assembly
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