How much of service department costs allocated to machining

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Reference no: EM131875337

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 $ 90,000

Assembly 58,400

Maintenance 36,400 — 0.2 0.5 0.3

Cafeteria 29,000 0.6 — 0.2 0.2

Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:

Machining Assembly

Job CM-22: Machine-hours 170 50

Labor-hours 50 30

Job CM-23: Machine-hours 30 60

Labor-hours 30 220

Required: How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places.)

Reference no: EM131875337

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