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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 Quality Direct Costa Repair Control Fabricating Finishing $ 141,600 100,200 42,900 80,100 0 0.6 0.2 0 0.5 0.2 0.3 0.2 sume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allc

[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 Quality Direct Costa Repair Control Fabricating Finishing $ 141,600 100,200 42,900 80,100 0 0.6 0.2 0 0.5 0.2 0.3 0.2 sume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allc

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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Required information [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 Job MP-471 Machine-hours Labor-hours Job MP-401 Machine-hours Labor-hours Direct Costs $ 141,600 100,200 42,900 80,100 Fabricating Finishing Fabricating 21 71 30 90 Proportion of Services Used by Quality Repair Control Fabricating Finishing 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 0.6 Job MP-47 Job MP-48 0.2 Finishing 80 10 46 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:Required information [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 Job MP-471 Machine-hours Labor-hours Job MP-401 Machine-hours Labor-hours Direct Costs $ 141,600 100,200 42,900 80,100 Fabricating Finishing Fabricating 21 71 30 90 Proportion of Services Used by Quality Repair Control Fabricating Finishing 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 0.6 Job MP-47 Job MP-48 0.2 Finishing 80 10 46 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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