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: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 147,600 112,200 48,300 140,210 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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 $ 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: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 147,600 112,200 48,300 140,210 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sagar
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:
Proportion of Services Used by
Direct Costs
Repair
Quality
Control
Fabricating
Finishing
$ 147,600
112,200
48,300
140,210
0
0.3
0.3
0.5
0.2
0
0.2
0.5
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
$
0
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