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 Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 132,600 94, 200 40,200 75,000 Machine-hours Labor-hours Fabricating 38 88 Fabricating Finishing Proportion of Services Used by Quality Repair Control Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 30 90 0 0.8 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Job MP-47 Job MP-48 0.2 0 Finishing 80 10 Fabricating Finishing 63 33 0.5 0.1 0.3 0.1 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar.
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 Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 132,600 94, 200 40,200 75,000 Machine-hours Labor-hours Fabricating 38 88 Fabricating Finishing Proportion of Services Used by Quality Repair Control Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 30 90 0 0.8 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Job MP-47 Job MP-48 0.2 0 Finishing 80 10 Fabricating Finishing 63 33 0.5 0.1 0.3 0.1 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sanju
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
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Direct Costs
$ 132,600
94, 200
40,200
75,000
Machine-hours
Labor-hours
Fabricating
Finishing
Fabricating
38
88
Repair
30
90
0
0.8
Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to
Jobs (LO 11-1)
Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to
jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in
each department are as follows:
Job MP-47 Job MP-48
Finishing
Proportion of Services Used by
Quality
Control
80
10
0.2
0
63
33
Fabricating Finishing
0.5
0.1
0.3
0.1
Required:
How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job
MP-47? How much should be allocated to Job MP-48?
Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the
nearest whole dollar.
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