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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 Proportion of Services Used by Quality Repair Control Fabricating Finishing Department Fabricating Finishing Repair Quality Controi Direct Costs $ 137,600 104,200 44,700 83,500 0 0.6 0.2 0 0.5 0.3 0.2 0.2 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-471 Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 33 80 83 10 30 58 90 28 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. Fabricating Finishing Job MP-47 Job MP-48

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 Proportion of Services Used by Quality Repair Control Fabricating Finishing Department Fabricating Finishing Repair Quality Controi Direct Costs $ 137,600 104,200 44,700 83,500 0 0.6 0.2 0 0.5 0.3 0.2 0.2 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-471 Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 33 80 83 10 30 58 90 28 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. Fabricating Finishing Job MP-47 Job MP-48

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 18E
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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: Proportion of Services Used by Quality Department Fabrioating Finishing Repair Quality Control Direct Costs $ 137,600. 104,200 Repair Control Fabricating Finishing. 44,700 83,500 0 0.2 0.6 0.5 0.3 0 0.2 0.2 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: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 33 80 83 10 30 90 58 28 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. Fabricating Finishing Job MP-47 Job MP-48
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: Proportion of Services Used by Quality Department Fabrioating Finishing Repair Quality Control Direct Costs $ 137,600. 104,200 Repair Control Fabricating Finishing. 44,700 83,500 0 0.2 0.6 0.5 0.3 0 0.2 0.2 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: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 33 80 83 10 30 90 58 28 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. Fabricating Finishing Job MP-47 Job MP-48
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