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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 Direct Costs $ 130,600 90,200 38,400 71,600 Repair 0 0.3 Proportion of Services Used by Quality Control Fabricating 0.3 0 0.5 0.1 Finishing 0.2 0.6 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

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 Direct Costs $ 130,600 90,200 38,400 71,600 Repair 0 0.3 Proportion of Services Used by Quality Control Fabricating 0.3 0 0.5 0.1 Finishing 0.2 0.6 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

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 Required: Use the reciprocal From: Direct Costs $ 130, 600 90, 200 38,400 71,600 Service department costs Repair Quality control Total $ $ Proportion of Services Used by Quality Repair Control Fabricating Finishing Repair 0 0.3 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 $ 38,400 $ MO 0.3 Quality Control Cost Allocation To: 71,600 71,600 0.5 0.1 Fabricating $ 0 0.2 0.6 $ 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 Required: Use the reciprocal From: Direct Costs $ 130, 600 90, 200 38,400 71,600 Service department costs Repair Quality control Total $ $ Proportion of Services Used by Quality Repair Control Fabricating Finishing Repair 0 0.3 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 $ 38,400 $ MO 0.3 Quality Control Cost Allocation To: 71,600 71,600 0.5 0.1 Fabricating $ 0 0.2 0.6 $ Finishing 0
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