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.
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:
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: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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