Question
Required information Skip to question [The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and
Required information
Skip to question
[The following information applies to the questions displayed below.]
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 | Direct Costs | Proportion of Services Used by | |||
---|---|---|---|---|---|
Repair | Quality Control | Fabricating | Finishing | ||
Fabricating | $ 136,600 | ||||
Finishing | 102,200 | ||||
Repair | 43,800 | 0 | 0.2 | 0.6 | 0.2 |
Quality Control | 81,800 | 0.8 | 0 | 0.1 | 0.1 |
Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows:
Fabricating | Finishing | |
---|---|---|
Job MP-47: | ||
Machine-hours | 34 | 80 |
Labor-hours | 84 | 10 |
Job MP-48: | ||
Machine-hours | 30 | 59 |
Labor-hours | 90 | 29 |
Required:
How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48?
Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar.
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