4 Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair andQuality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month ofMarch follow:DepartmentFabricatingFinishingRepairQuality ControlFrom:Direct Costs$ 133,60096, 20041,100233,370Service department costsRepairQuality controlTotalRepairRepair0.3Proportion of Services Used byQualityControl0.30Required: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 finalanswers to the nearest whole dollar amounts.Fabricating FinishingQualityControlCost Allocation To:0.60.10.10.6FabricatingFinishing

Lets understand the basics.Cost allocation is the allocation of the cost of service departments to…

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: Direct Costs $ 133,600 96, 200 41,100 233,370 Proportion of Services Used by Quality Repair Control 0 0.3 0.3 0 Fabricating Finishing 0.6 0.1 0.1 0.6