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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: Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 143,600 104,200 44,700 Quality Control 8.2 0.5 8.3 83,500 0.8 0 0.1 0.1 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). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B 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. Cost Allocation To: From: Quality Repair Control Fabricating Finishing Service department costs Repair S 0 S 13.410 S 8,940 S 22,350x Quality control Total costs allocated S 0 S 13.410 S 8,940 S 22,350 Required A Required B > 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: Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 143,600 104,200 Quality Control 44,700 83,500 0.2 0.5 0.3 0.8 0.1 0.1 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). Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B 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. Cost Allocation To: From: Quality Control Repair Fabricating Finishing Service department costs 0x S 143,600 s 71,607 > Quality control 66,279 Repair 34 X 15.198 Total costs allocated 0 S 0 S 209,879 88,839 < Required A Required B
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