Please Correct answer And Do Not give solution in image format Required A Required BUse 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 intermedFrom:Service department costsRepairQuality controlTotal costs allocatedShow Transcribed TextRequired A Required BFrom:Service department costsQuality controlRepairTotal costs allocated$$$Repair42,000 $(42,000) ✔QualityControl$ 78,400(78,400)0 $0CUse the step method to allocate the service costs, using the following:The allocations are made in the reverse order (starting with Quality Control).Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate cCost Allocation To:$QualityControlFabricating78,400 $ 140,600 $12,60016,800(91,000)26,000$ 183,400 $0Cost Allocation To:FabricatingRepair$ 42,000 $ 140,60023,52015,680(65,520)37,440$ 193,7200Finishing$98,20012,60065,000175,800Finishing$98,20039,20028,080165,480 Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair andQuality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month ofMarch follow:DepartmentFabricatingFinishingRepairQuality ControlDirect Costs Repair$ 140,60098, 20042,00078,40000.3Proportion of Services Used byQualityControlFabricating0.30Required:Use the step method to allocate the service costs, using the following:0.40.2a. The order of allocation starts with Repair.b. The allocations are made in the reverse order (starting with Quality Control).Finishing0.30.5

The service department costs can be allocated to production departments using various methods as…

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