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The managers of Nash Manufacturing are discussing ways to allocate the cost of service departments, such as quality control and maintenance, to the production departments.

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The managers of Nash Manufacturing are discussing ways to allocate the cost of service departments, such as quality control and maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information Quality Control $343,000 Maintenance $196,000 Machining Assembly $394,000 $313,000 Total $1.246,000 Budgeted overhead costs before Allocation Budgeted machine 45,000 45,000 Hours Budgeted direct 26,000 26,000 Tabour hours 8,000 24,000 8.000 40,000 Budgeted hours of service: Quality Control Maintenance 10,000 18,000 12,000 40,000 Using the reciprocal method allocate the Quality Control and Maintenance costs. Use either simultaneous equations or Excel Solver. (Round answers to decimal places, eg. 125. Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses es. (451) Support Departments Quality Control Maintenance Operat Machining Allocation Bases: Quality Control % I Maintenance 9 $ Total Assigned Costs Quality Control % Maintenance % Total Assigned Costs Allocations: $ Quality Control 1 $ $ Maintenance $ $ $ Total Allocated Costs

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