Exercise $11-28($Algo$)$ Cost Allocation: Step Method $($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:

Required:

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

a$.$ The order of allocation starts with Repair.

b$.$ The allocations are made in the reverse order $($starting with Quality Control$).$

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

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.