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 Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 145,600 Quality Control 108,200 46,500 122,550 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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. From: Service department costs Repair Quality control Total Cost Allocation To: Quality Repair Control Fabricating Finishing $ 0 $ 0 $ 0 $ 10
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 Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 145,600 Quality Control 108,200 46,500 122,550 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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. From: Service department costs Repair Quality control Total Cost Allocation To: Quality Repair Control Fabricating Finishing $ 0 $ 0 $ 0 $ 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Proportion of Services Used by
Department
Fabricating
Finishing
Repair
Direct Costs
Repair
Quality
Control
Fabricating
Finishing
$ 145,600
Quality Control
108,200
46,500
122,550
0
0.3
0.3
0.5
0.2
0
0.2
0.5
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.
From:
Service department costs
Repair
Quality control
Total
Cost Allocation To:
Quality
Repair
Control
Fabricating
Finishing
$
0 $
0 $
0 $
10
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