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	Direct Costs	Proportion of Services Used by
		Repair	Quality Control	Fabricating	Finishing
Fabricating	$ 130,600
Finishing	90,200
Repair	38,400	0	0.3	0.5	0.2
Quality Control	71,600	0.3	0	0.1	0.6

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.

2. Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $644,000 for materials and $292,000 for conversion costs. The results of the processing follow:

	Units Produced	Sales Value per Unit
Alpha	25,500	$ 9.60
Beta	20,400	18.00
Gamma	5,100	80.00

Required:

Assign costs to Alpha, Beta, and Gamma for February using the net realizable value method.