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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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $137,600 104,200 44,700 83,500 0 0.6 0.2 0 0.5 0.2 0.3 0.2 cise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and The- s (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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $137,600 104,200 44,700 83,500 0 0.6 0.2 0 0.5 0.2 0.3 0.2 cise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and The- s (LO 11-1)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Job MP-47: Machine-hours Labor-hours Job MP-481 Direct Costs $137,600. 104,200. 44,700 83,500 Machine-hours Labor-hours Fabricating Finishing Fabricating 33 83 30 90 Repair Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Job MP-47 Job MP-48 0 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: 0.6 80 10 Proportion of Services Used by Quality Finishing 58 28 Control Fabricating Finishing. 0.2 0 0.5 0.2 0.3 0.2 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar.
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 Job MP-47: Machine-hours Labor-hours Job MP-481 Direct Costs $137,600. 104,200. 44,700 83,500 Machine-hours Labor-hours Fabricating Finishing Fabricating 33 83 30 90 Repair Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Job MP-47 Job MP-48 0 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: 0.6 80 10 Proportion of Services Used by Quality Finishing 58 28 Control Fabricating Finishing. 0.2 0 0.5 0.2 0.3 0.2 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar.
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