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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 department
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 varlous departments for the month ofMarch follow: refer to image 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 Under the row labels the quality control and repair switch, and the columns Quality control and repair switch from reference image for requirment A Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations
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 varlous departments for the month ofMarch follow: refer to image
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 Under the row labels the quality control and repair switch, and the columns Quality control and repair switch from reference image for requirment A
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations
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