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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 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 order of allocation starts with Repair.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
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