Question

# 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 \$ 104,000
Assembly 74,400
Maintenance 46,000 0.2 0.5 0.3
Cafeteria 37,000 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 150 60 Labor-hours 40 20 Job CM-23: Machine-hours 50 20 Labor-hours 30 110

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.)

 Machining Assembly Maintenance: 46000/(0.5+0.3)*0.5 28750 46000/(0.5+0.3)*0.3 17250 Cafeteria: 37000/(0.2+0.2)*0.2 18500 37000/(0.2+0.2)*0.2 18500 Total 47250 35750 Machining Assembly Allocation bases: Job CM­22: Machine­hours 150 Labor­hours 20 Job CM­23: Machine­hours 50 Labor­hours 110 Total allocation base 200 130 Department rates: Machining : 47250/200 236.25 per machine­hour Assembly : 35750/130 275.00 per labor­hour Costs assigned to jobs: Job CM­22 Machining 35437.5 =150*236.25 Assembly 5500 =20*275 40937.5 Job CM­23 Machining 11812.5 =50*236.25 Assembly 30250 =110*275 42062.5 Job CM­22 Job CM­23 Machining 35437.50 11812.50 Assembly 5500.00 30250.00 If rounded off: Job CM­22 Job CM­23 Machining 35438 11813 Assembly 5500 30250