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
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:
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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