[The following information applies to the questions displayed below.] 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 Direct Costs $ 140,600 Repair Quality Control Fabricating Finishing 98,200 42,000 78,400 0 0.3 0.3 0 0.4 0.3 0.2 0.5 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: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 20 80 70 10 30 90 45 15 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: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Job MP-47 Job MP-48 Fabricating Finishing $ 9,424
[The following information applies to the questions displayed below.] 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 Direct Costs $ 140,600 Repair Quality Control Fabricating Finishing 98,200 42,000 78,400 0 0.3 0.3 0 0.4 0.3 0.2 0.5 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: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Required: Fabricating Finishing 20 80 70 10 30 90 45 15 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: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Job MP-47 Job MP-48 Fabricating Finishing $ 9,424
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
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
Direct Costs
$ 140,600
Repair
Quality
Control
Fabricating
Finishing
98,200
42,000
0
0.3
0.4
0.3
78,400
0.3
0
0.2
0.5
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:
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Machine-hours
Labor-hours
Required:
Fabricating
Finishing
20
80
70
10
30
90
45
15
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: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.
Job MP-47
Job MP-48
Fabricating
Finishing
$
9,424](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a6dff2a-a390-46e3-ad39-00533c1367d9%2Fd9dc1020-94ce-47e8-b6ac-190a37f9c29c%2F97x8vdn_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
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
Direct Costs
$ 140,600
Repair
Quality
Control
Fabricating
Finishing
98,200
42,000
0
0.3
0.4
0.3
78,400
0.3
0
0.2
0.5
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:
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Machine-hours
Labor-hours
Required:
Fabricating
Finishing
20
80
70
10
30
90
45
15
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: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.
Job MP-47
Job MP-48
Fabricating
Finishing
$
9,424
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