ack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair an uality Control. Direct costs for each department and the proportion of service costs used by the various departments for the m arch follow: Department Fabricating Finishing Repair Quality Control Direct Costs Repair $ 140,600 98, 200 42,000 78,400 0 0.3 Proportion of Services Used by Quality Control Fabricating 0.3 0 -quired: e the step method to allocate the service costs, using the following: 0.4 0.2 Finishing 0.3 0.5
ack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair an uality Control. Direct costs for each department and the proportion of service costs used by the various departments for the m arch follow: Department Fabricating Finishing Repair Quality Control Direct Costs Repair $ 140,600 98, 200 42,000 78,400 0 0.3 Proportion of Services Used by Quality Control Fabricating 0.3 0 -quired: e the step method to allocate the service costs, using the following: 0.4 0.2 Finishing 0.3 0.5
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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Question
Please Correct answer And Do Not give solution in image format
![Required A Required B
Use the step method to allocate the service costs, using the following:
The order of allocation starts with Repair.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermed
From:
Service department costs
Repair
Quality control
Total costs allocated
Show Transcribed Text
Required A Required B
From:
Service department costs
Quality control
Repair
Total costs allocated
$
$
$
Repair
42,000 $
(42,000) ✔
Quality
Control
$ 78,400
(78,400)
0 $
0
C
Use the step method to allocate the service costs, using the following:
The allocations are made in the reverse order (starting with Quality Control).
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate c
Cost Allocation To:
$
Quality
Control
Fabricating
78,400 $ 140,600 $
12,600
16,800
(91,000)
26,000
$ 183,400 $
0
Cost Allocation To:
Fabricating
Repair
$ 42,000 $ 140,600
23,520
15,680
(65,520)
37,440
$ 193,720
0
Finishing
$
98,200
12,600
65,000
175,800
Finishing
$
98,200
39,200
28,080
165,480](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F99618e7c-9609-4f74-b476-3a9a6d1657c5%2Fhv7w2or_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required A Required B
Use the step method to allocate the service costs, using the following:
The order of allocation starts with Repair.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermed
From:
Service department costs
Repair
Quality control
Total costs allocated
Show Transcribed Text
Required A Required B
From:
Service department costs
Quality control
Repair
Total costs allocated
$
$
$
Repair
42,000 $
(42,000) ✔
Quality
Control
$ 78,400
(78,400)
0 $
0
C
Use the step method to allocate the service costs, using the following:
The allocations are made in the reverse order (starting with Quality Control).
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate c
Cost Allocation To:
$
Quality
Control
Fabricating
78,400 $ 140,600 $
12,600
16,800
(91,000)
26,000
$ 183,400 $
0
Cost Allocation To:
Fabricating
Repair
$ 42,000 $ 140,600
23,520
15,680
(65,520)
37,440
$ 193,720
0
Finishing
$
98,200
12,600
65,000
175,800
Finishing
$
98,200
39,200
28,080
165,480
![Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and
Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of
March follow:
Department
Fabricating
Finishing
Repair
Quality Control
Direct Costs Repair
$ 140,600
98, 200
42,000
78,400
0
0.3
Proportion of Services Used by
Quality
Control
Fabricating
0.3
0
Required:
Use the step method to allocate the service costs, using the following:
0.4
0.2
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Finishing
0.3
0.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F99618e7c-9609-4f74-b476-3a9a6d1657c5%2Fnglmahf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and
Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of
March follow:
Department
Fabricating
Finishing
Repair
Quality Control
Direct Costs Repair
$ 140,600
98, 200
42,000
78,400
0
0.3
Proportion of Services Used by
Quality
Control
Fabricating
0.3
0
Required:
Use the step method to allocate the service costs, using the following:
0.4
0.2
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Finishing
0.3
0.5
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