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 From: Proportion of Services Used by Quality Direct Costs Repair Control $ 147,600 112, 200 48,300 140,210 Repair Fabricating Finishing 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. Cost Allocation To: Quality Control 0.5 0.2 0.2 0.5 Fabricating Finishing

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
From:
Direct Costs Repair
$ 147,600
Service department costs
Repair
Quality control
Total
112, 200
48,300
140, 210
$
Repair
8
0.3
0 $
Proportion of Services Used by
Quality
Control
Fabricating
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.
0.3
Cost Allocation To:
Quality
Control
0.5
8.2
Fabricating
$
Finishing
0.2
0.5
0 $
Finishing
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 From: Direct Costs Repair $ 147,600 Service department costs Repair Quality control Total 112, 200 48,300 140, 210 $ Repair 8 0.3 0 $ Proportion of Services Used by Quality Control Fabricating 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. 0.3 Cost Allocation To: Quality Control 0.5 8.2 Fabricating $ Finishing 0.2 0.5 0 $ Finishing
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