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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
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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing Fabricating $ 144,600 Finishing 106,200 Repair Quality Control 45,600 113,720 Required: 0.6 0.1 0.2 0.5 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. From: Service department costs Repair Quality control Total Cost Allocation To: Repair Quality Control Fabricating Finishing $ 0 $ 0 $ 0 $ 0
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