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 Fabricating Finishing Repair Quality Control From: Service department costs Repair Quality control Total Direct Costs Repair Control Fabricating $ 139,600 108,200 46,500 177,150 $ 0.3 Repair Proportion of Services Used by Quality Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations, Round your final answers to the nearest whole dollar amounts. 0 $ Cost Allocation To: Quality Control 0.6 0.1 Fabricating 0 $ Finishing 0.1 0.6 0 $ Finishing
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 Fabricating Finishing Repair Quality Control From: Service department costs Repair Quality control Total Direct Costs Repair Control Fabricating $ 139,600 108,200 46,500 177,150 $ 0.3 Repair Proportion of Services Used by Quality Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations, Round your final answers to the nearest whole dollar amounts. 0 $ Cost Allocation To: Quality Control 0.6 0.1 Fabricating 0 $ Finishing 0.1 0.6 0 $ Finishing
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 5E: Crystal Scarves Co. produces winter scarves. The scarves are produced in the Cutting and Sewing...
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