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: Service department costs Repair Quality control Total Direct Costs Repair $ 146,600 110, 200 47,400 131,380 $ 0 0.3 Repair Proportion of Services Used by Quality Control Fabricating 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 Cost Allocation To: Quality Control 0.6 0.1 Fabricating 0 $ Finishing 0.1 0.6 0 $ Finishing 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 From: Service department costs Repair Quality control Total Direct Costs Repair $ 146,600 110, 200 47,400 131,380 $ 0 0.3 Repair Proportion of Services Used by Quality Control Fabricating 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 Cost Allocation To: Quality Control 0.6 0.1 Fabricating 0 $ Finishing 0.1 0.6 0 $ Finishing 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
From:
Service department costs
Repair
Quality control
Total
Direct Costs Repair
$ 146,600
110, 200
47,400
131,380
$
0
0.3
Repair
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
Fabricating Finishing
Cost Allocation To:
0.6
0.1
0 $
Fabricating
0.1
0.6
Finishing
0 $
0
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