Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Fabricating Fabricating 39 89 30 90 Job MP-47 Job MP-48 $ 48,658 $ Finishing Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. 49,205 10408 80 10 64 34
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

![Required information
Exercise 11-25 & 11-26 (Algo) (LO 11-1)
[The following information applies to the questions displayed below.]
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
$ 131,600
92,200
39,300
73,300
Repair
8
0.6
Proportion of Services Used by
Quality
Control Fabricating Finishing
0.2
0.5
0.2
0.3
0.2
Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to
Jobs (LO 11-1)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79338ae7-95ae-4aeb-b3b3-7c1af94b0a9e%2F21296110-c4ad-4367-8720-ed4785e5579a%2Fk6ei8ns_processed.jpeg&w=3840&q=75)
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