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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: Proportion of Services Used by Department Direct Costs Repair Quality Control Fabricating Finishing Fabricating $ 136,600 Finishing 102,200 Repair 43,800 0 0.2 0.6 0.2 Quality Control 81,800 0.8 0 0.1 0.1 Required: Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. The allocations are made in the reverse order (starting with Quality Control). Complete this question by entering your answers in the tabs below. Required A Required B 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.

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 Direct Costs Repair Quality Control Fabricating Finishing Fabricating $ 136,600 Finishing 102,200 Repair 43,800 0 0.2 0.6 0.2 Quality Control 81,800 0.8 0 0.1 0.1 Required: Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. The allocations are made in the reverse order (starting with Quality Control). Complete this question by entering your answers in the tabs below. Required A Required B 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.

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:

  Proportion of Services Used by
Department Direct Costs Repair Quality Control Fabricating Finishing
Fabricating $ 136,600        
Finishing 102,200        
Repair 43,800 0 0.2 0.6 0.2
Quality Control 81,800 0.8 0 0.1 0.1

Required:

Use the step method to allocate the service costs, using the following:

  1. The order of allocation starts with Repair.
  2. The allocations are made in the reverse order (starting with Quality Control).

 

Complete this question by entering your answers in the tabs below.

 
  • Required A
  • Required B

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.

 
 
 
 
From: Cost Allocation To:
Repair Quality Control Fabricating Finishing
Service department costs        
Repair        
Quality control        
Total costs allocated $0 $0 $0 $0
 
    • Required B

    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.

     
     
     
     
    From: Cost Allocation To:
    Quality Control Repair Fabricating Finishing
    Service department costs        
    Quality control        
    Repair        
    Total costs allocated $0 $0 $0 $0
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