Department Fabricating Finishing Repair Quality Control Direct Costs $ 136,600 102,200 43,800 205,260 Repair 8 0.3 Proportion of Services Used by Quality Control 0.3 0 Fabricating Finishing 9.6 0.1 0.1 6.6 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be Indicated by a minus sign. Do not round Intermediate calculati answers to the nearest whole dollar amounts.
Department Fabricating Finishing Repair Quality Control Direct Costs $ 136,600 102,200 43,800 205,260 Repair 8 0.3 Proportion of Services Used by Quality Control 0.3 0 Fabricating Finishing 9.6 0.1 0.1 6.6 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be Indicated by a minus sign. Do not round Intermediate calculati answers to the nearest whole dollar amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ashvin
Transcribed Image Text:Exercise 11-30 (Algo) Cost Allocation: Reciprocal Method (LO 11-1)
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
From:
Direct Costs
$ 136,600
102,200
43,800
205,260
Service department costs
Repair
Quality control
Total
$
Repair
Repair
8
0.3
Proportion of Services Used by
Quality
Control
Required:
Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)
Note: Amounts to be deducted should be Indicated by a minus sign. Do not round Intermediate calculations. Round your final
answers to the nearest whole dollar amounts.
0 $
0.3
0
Quality
Control
Cost Allocation To:
Fabricating Finishing
0
0.6
0.1
$
Fabricating
0
0.1
0.6
Finishing
S
0
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