am. 293. Exercise 11-28 (Algo) Cost Allocation: Step Method (LO 11-1)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 followDepartmentFabricatingFinishingRepairQuality ControlDirect Costs Repair Control$ 132,60094,20040,20075,000From:Service department costsRepairQuality controlTotal costs allocatedRequired:Use the step method to allocate the service costs, using the following:Required Ba. The order of allocation starts with Repairb. The allocations are made in the reverse order (starting with Quality Control)Required A Required BFrom:0.0Complete this question by entering your answers in the tabs below.Service department costsQuality controlRepairTotal costs allocatedProportion of Services Used byQualityRequired AUse 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.$$0.2RepairQualityControl.Fabricating Finishing0 $0 $0.50.1QualityControlRequired ACost Allocation To:Complete this question by entering your answers in the tabs below.Repair0.30.1< Required A0 $Use the step method to allocate the service costs, using the following:The allocations are made in the reverse order (starting with Quality Control).Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.Cost Allocation To:Fabricating0 $FabricatingFinishing0 $Required B >Finishing0 $Required B >00

A firm may have different departments from manufacturing to service to run its overall business. In…

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 Contral Direct Costs $ 132,600 94,200 40,200 75,000 Proportion of Services Used by Quality Control Fabricating Required: Use the step method to allocate the service costs, using the following 0.5 0.1 Finishing 8.1

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 Contral Direct Costs $ 132,600 94,200 40,200 75,000 Proportion of Services Used by Quality Control Fabricating Required: Use the step method to allocate the service costs, using the following 0.5 0.1 Finishing 8.1

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

am. 293.

Exercise 11-28 (Algo) Cost Allocation: Step Method (LO 11-1)
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 Repair Control
$ 132,600
94,200
40,200
75,000
From:
Service department costs
Repair
Quality control
Total costs allocated
Required:
Use the step method to allocate the service costs, using the following:
Required B
a. The order of allocation starts with Repair
b. The allocations are made in the reverse order (starting with Quality Control)
Required A Required B
From:
0.0
Complete this question by entering your answers in the tabs below.
Service department costs
Quality control
Repair
Total costs allocated
Proportion of Services Used by
Quality
Required A
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.
$
$
0.2
Repair
Quality
Control.
Fabricating Finishing
0 $
0 $
0.5
0.1
Quality
Control
Required A
Cost Allocation To:
Complete this question by entering your answers in the tabs below.
Repair
0.3
0.1
< Required A
0 $
Use the step method to allocate the service costs, using the following:
The allocations are made in the reverse order (starting with Quality Control).
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
Cost Allocation To:
Fabricating
0 $
Fabricating
Finishing
0 $
Required B >
Finishing
0 $
Required B >
0
0

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