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 A Required B Direct Costs Repair $ 143,600 104, 200 44,700 83,500 Required: Use the step method to allocate the service costs, using the following: From: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Repair Quality control Total costs allocated Proportion of Services Used by Quality Control 0 0.8 Complete this question by entering your answers in the tabs below. $ Repair 0.2 0 0 $ Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Fabricating Finishing Cost Allocation To: Quality Control 0.5 0.1 Fabricating 0 $ 0 $ 0.3 0.1 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 Required A Required B Direct Costs Repair $ 143,600 104, 200 44,700 83,500 Required: Use the step method to allocate the service costs, using the following: From: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Repair Quality control Total costs allocated Proportion of Services Used by Quality Control 0 0.8 Complete this question by entering your answers in the tabs below. $ Repair 0.2 0 0 $ Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Fabricating Finishing Cost Allocation To: Quality Control 0.5 0.1 Fabricating 0 $ 0 $ 0.3 0.1 Finishing 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 A
Required:
Use the step method to allocate the service costs, using the following:
Required B
Direct Costs Repair
$ 143,600
104, 200
44,700
83,500
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
From:
Proportion of Services Used by
Quality
Control Fabricating Finishing
0
0.8
Complete this question by entering your answers in the tabs below.
Service department costs
Repair
Quality control
Total costs allocated
Repair
0.2
0
0 $
Use the step method to allocate the service costs, using the following:
The order of allocation starts with Repair.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
Cost Allocation To:
Quality
Control
0.5
0.1
Fabricating
0 $
0
0.3
0.1
Finishing
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbe3e682-0170-4e5e-a448-703bb6b4ca93%2F811e4139-8e4e-44e3-952c-6bd3808e0b18%2Fo9l1v3c_processed.png&w=3840&q=75)
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 A
Required:
Use the step method to allocate the service costs, using the following:
Required B
Direct Costs Repair
$ 143,600
104, 200
44,700
83,500
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
From:
Proportion of Services Used by
Quality
Control Fabricating Finishing
0
0.8
Complete this question by entering your answers in the tabs below.
Service department costs
Repair
Quality control
Total costs allocated
Repair
0.2
0
0 $
Use the step method to allocate the service costs, using the following:
The order of allocation starts with Repair.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
Cost Allocation To:
Quality
Control
0.5
0.1
Fabricating
0 $
0
0.3
0.1
Finishing
0
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