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 Direct Costs Proportion of Services Used by Repair Quality Control Fabricating Fabricating $135,600 Finishing 100,200 Repair 42,900 Quality Control 80,100 0.8 0 Compute the allocation of service department costs to producing departments using the direct method.(Total Allocation Costs) Fabrication Finishing 0 Finishing 0.2 0.6 0.2 0.1 0.1
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 Direct Costs Proportion of Services Used by Repair Quality Control Fabricating Fabricating $135,600 Finishing 100,200 Repair 42,900 Quality Control 80,100 0.8 0 Compute the allocation of service department costs to producing departments using the direct method.(Total Allocation Costs) Fabrication Finishing 0 Finishing 0.2 0.6 0.2 0.1 0.1
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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![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
Repair
Fabricating
Finishing
Repair
Direct Costs Proportion of Services Used by
Quality Control
Fabricating
$ 135,600
Finishing
100,200
42,900
0
Quality Control 80,100
Compute the allocation of service department costs to producing departments using the direct method.(Total Allocation Costs)
Fabrication
Finishing
0.8
0.2
0.6 0.2
0.1 0.1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F556f55e6-e655-42d7-b703-e80a6228fadf%2F1b6b5278-641c-4799-a9cc-6adce0f0a915%2Fpzuy1fa_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
Repair
Fabricating
Finishing
Repair
Direct Costs Proportion of Services Used by
Quality Control
Fabricating
$ 135,600
Finishing
100,200
42,900
0
Quality Control 80,100
Compute the allocation of service department costs to producing departments using the direct method.(Total Allocation Costs)
Fabrication
Finishing
0.8
0.2
0.6 0.2
0.1 0.1
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