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 Direct Costs Repair Quality Control Fabricating Finishing Fabricating $ 132,600 Finishing 94,200 Repair 40,200 0 0.2 0.5 0.3 Quality Control 75,000 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 revers order (Starting with quality control)