Mack Precision lool 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 Required: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 148,600 114,200 49,200 92,000 0 0.2 0.5 0.3 0.8 0 0.1 0.1 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Complete this question by entering your answers in the tabs below. 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 intermediate calculations. Cost Allocation To: Quality From: Repair Control Fabricating Finishing Service department costs $ 49,200 $ 92,000 $ 0 $ 0 Repair Quality control
Mack Precision lool 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 Required: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 148,600 114,200 49,200 92,000 0 0.2 0.5 0.3 0.8 0 0.1 0.1 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Complete this question by entering your answers in the tabs below. 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 intermediate calculations. Cost Allocation To: Quality From: Repair Control Fabricating Finishing Service department costs $ 49,200 $ 92,000 $ 0 $ 0 Repair Quality control
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rahul
Transcribed Image Text:Mack Precision lool 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
Required:
Proportion of Services Used by
Direct Costs
Repair
Quality
Control
Fabricating
Finishing
$ 148,600
114,200
49,200
92,000
0
0.2
0.5
0.3
0.8
0
0.1
0.1
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Complete this question by entering your answers in the tabs below.
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 intermediate calculations.
Cost Allocation To:
Quality
From:
Repair
Control
Fabricating
Finishing
Service department costs
$
49,200 $
92,000 $
0 $
0
Repair
Quality control
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