FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 department and the proportion of service costs used by the various
departments for the month of March follow:
Department
Fabricating
Finishing
Repair
Quality Control
Job MP-47:
Machine-hours
Labor-hours
Direct Costs
$ 133,600
96,200
41,100
76,700
Job MP-48:
Machine-hours
Labor-hours
Repair
Fabricating
37
87
Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to
Jobs (LO 11-1)
30
90
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:
0.8
Finishing
80
10
Proportion of Services Used by
Quality
Control
62
32
0.2
0
Fabricating Finishing
0.6
0.1
0.2
0.1
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?
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Transcribed Image Text: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 Job MP-47: Machine-hours Labor-hours Direct Costs $ 133,600 96,200 41,100 76,700 Job MP-48: Machine-hours Labor-hours Repair Fabricating 37 87 Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 30 90 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: 0.8 Finishing 80 10 Proportion of Services Used by Quality Control 62 32 0.2 0 Fabricating Finishing 0.6 0.1 0.2 0.1 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?
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:
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Machine-hours
Labor-hours
Fabricating
Finishing
Fabricating
37
87
Job MP-47
30
90
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.
Finishing
80
10
Job MP-48
62
32
expand button
Transcribed Image Text: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: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Fabricating Finishing Fabricating 37 87 Job MP-47 30 90 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. Finishing 80 10 Job MP-48 62 32
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