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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 Fabricating Finishing Repair Quality Control. Job MP-47: Machine-hours Labor-hours Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 137,600 104,200 44,700 83,500 Job MP-48: Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then t Jobs (LO 11-1) Machine-hours Labor-hours Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated 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: 0 0.6 Fabricating 33 83 30 90 Finishing 0.2 0 80 10 0.5 0.2 58 28 0.3 0.2 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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 137,600 104,200 44,700 83,500 Job MP-48: Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then t Jobs (LO 11-1) Machine-hours Labor-hours Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated 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: 0 0.6 Fabricating 33 83 30 90 Finishing 0.2 0 80 10 0.5 0.2 58 28 0.3 0.2 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Fabricating Finishing Repair Quality Control Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Direct Costs Repair $ 137,600 104,200 44,700 83,500 Intan Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Fabricating 33 83 30 90 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: 0 Proportion of Services Used by Quality Control 0.6 80 10 58 28 Finishing 0.2 0 Fabricating Finishing Prey 0.5 0.2 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. 0.3 0.2 1 of 10 # Moud
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: Machine-hours Labor-hours Direct Costs Repair $ 137,600 104,200 44,700 83,500 Intan Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Fabricating 33 83 30 90 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: 0 Proportion of Services Used by Quality Control 0.6 80 10 58 28 Finishing 0.2 0 Fabricating Finishing Prey 0.5 0.2 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. 0.3 0.2 1 of 10 # Moud
Quality Control Job MP-47: Machine-hours Labor-hours Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Job MP-48: 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: Machine-hours Labor-hours Fabricating Finishing 83,500 Job MP-47 Fabricating 33 83 30 90 0.6 Job MP-48 Finishing 0 80 10 0.2 58 28 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.
Transcribed Image Text:Quality Control Job MP-47: Machine-hours Labor-hours Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Job MP-48: 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: Machine-hours Labor-hours Fabricating Finishing 83,500 Job MP-47 Fabricating 33 83 30 90 0.6 Job MP-48 Finishing 0 80 10 0.2 58 28 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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