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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 From: Direct Costs $ 130,600 90, 200 38,400 71,600 Service department costs Repair Quality control Total $ $ Repair Repair 0 0.3 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. 38,400 $ Proportion of Services Used by Quality Control Fabricating 38,400 $ 0.3 0 Cost Allocation To: Quality Control 71,600 0.5 0.1 Fabricating 71,600 $ Finishing 0 $ 0.2 0.6 Finishing 0

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 From: Direct Costs $ 130,600 90, 200 38,400 71,600 Service department costs Repair Quality control Total $ $ Repair Repair 0 0.3 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. 38,400 $ Proportion of Services Used by Quality Control Fabricating 38,400 $ 0.3 0 Cost Allocation To: Quality Control 71,600 0.5 0.1 Fabricating 71,600 $ Finishing 0 $ 0.2 0.6 Finishing 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 Fabricating Finishing Repair Quality Control From: Direct Costs $ 130,600 90, 200 Service department costs Repair Quality control Total 38,400 71,600 $ $ Repair Repair 0 0.3 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. MENTER 38,400 $ Proportion of Services Used by Quality Control 38,400 $ 0.3 0 Cost Allocation To: laidun autrded spinal TORPOO Quality Control PORTERE 71,600 Fabricating Finishing 71,600 0.5 0.1 $ Fabricating 0.2 0.6 0 $ Finishing 0
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 From: Direct Costs $ 130,600 90, 200 Service department costs Repair Quality control Total 38,400 71,600 $ $ Repair Repair 0 0.3 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. MENTER 38,400 $ Proportion of Services Used by Quality Control 38,400 $ 0.3 0 Cost Allocation To: laidun autrded spinal TORPOO Quality Control PORTERE 71,600 Fabricating Finishing 71,600 0.5 0.1 $ Fabricating 0.2 0.6 0 $ Finishing 0
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