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 Finishing Fabricating $ 139,600 Finishing 108,200 Repair 46,500 0 0.2 0.6 0.2 Quality Control 86,900 0.6 0 0.1 0.3 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Total Allocated Costs Fabricating Finishing
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 Finishing Fabricating $ 139,600 Finishing 108,200 Repair 46,500 0 0.2 0.6 0.2 Quality Control 86,900 0.6 0 0.1 0.3 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Total Allocated Costs Fabricating Finishing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | Direct Costs | Proportion of Services Used by | |||
|---|---|---|---|---|---|
| Repair | Quality Control | Fabricating | Finishing | ||
| Fabricating | $ 139,600 | ||||
| Finishing | 108,200 | ||||
| Repair | 46,500 | 0 | 0.2 | 0.6 | 0.2 |
| Quality Control | 86,900 | 0.6 | 0 | 0.1 | 0.3 |
Required:
Compute the allocation of service department costs to producing departments using the direct method.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
| Total Allocated Costs | |||||
| Fabricating | |||||
| Finishing |
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