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 Required: Use the step method to allocate the service costs, using the following: Required B Direct Costs Repair Control $ 148,600 114,200 49,200 92,000 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). From: Complete this question by entering your answers in the tabs below. Service department costs Quality control Proportion of Services Used by Quality Repair Total costs allocated Required A 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 calculations. Cost Allocation To: $ Quality Control 0 S Fabricating Finishing Repair < Required A 0.5 8.1 Fabricating 0 S Finishing 0 S 0.3 0.1 Required B > 0
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 Required: Use the step method to allocate the service costs, using the following: Required B Direct Costs Repair Control $ 148,600 114,200 49,200 92,000 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). From: Complete this question by entering your answers in the tabs below. Service department costs Quality control Proportion of Services Used by Quality Repair Total costs allocated Required A 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 calculations. Cost Allocation To: $ Quality Control 0 S Fabricating Finishing Repair < Required A 0.5 8.1 Fabricating 0 S Finishing 0 S 0.3 0.1 Required B > 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
Proportion of Services Used by
Quality
Direct Costs Repair Control
Fabricating
$ 148,600
114, 200
49,200
92,000
Required:
Use the step method to allocate the service costs, using the following:
From:
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Service department costs
Quality control
Complete this question by entering your answers in the tabs below.
Repair
Total costs allocated
8
0.8
S
Required A
Required B
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 calculations.
Cost Allocation To:
Quality
Control
9.2
8
0 $
Repair
< Required A
0.5
0.1
Fabricating
0 $
Finishing
Finishing
0 S
Required B >
0.3
0.1
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b5714fb-4e7f-4168-a3fc-af8af3f4330d%2F11fe0968-faad-4a67-be81-353397823c39%2F1p56xp_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
Proportion of Services Used by
Quality
Direct Costs Repair Control
Fabricating
$ 148,600
114, 200
49,200
92,000
Required:
Use the step method to allocate the service costs, using the following:
From:
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Service department costs
Quality control
Complete this question by entering your answers in the tabs below.
Repair
Total costs allocated
8
0.8
S
Required A
Required B
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 calculations.
Cost Allocation To:
Quality
Control
9.2
8
0 $
Repair
< Required A
0.5
0.1
Fabricating
0 $
Finishing
Finishing
0 S
Required B >
0.3
0.1
0
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