Exercise 11-30 (Algo) Cost Allocation: Reciprocal Method (LO 11-1) 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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing From: Service department costs Repair Quality control Total $ 149,600 112,200 48,300 158,410 $ $ 0.3 Repair 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. 48,300 $ 0.3 0 Quality Control Cost Allocation To: 0.6 0.1 Fabricating 158,410 $ 48,300 $ 158,410 $ 0.1 8.6 Finishing o $ 0$ 0

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter5: Support Department And Joint Cost Allocation
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Exercise 11-30 (Algo) Cost Allocation: Reciprocal Method (LO 11-1)
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
Proportion of Services Used by
Quality
Direct Costs Repair Control Fabricating Finishing
From:
Service department costs
Repair
Quality control
Total
$ 149,600
112,200
48,300
158,410
$
$
0
0.3
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.
Repair
48,300 $
0.3
0
Cost Allocation To:
Quality
Control
0.6
0.1
Fabricating
158,410 $
48,300 $ 158,410 $
0.1
0.6
Finishing.
of $
0 $
0
Transcribed Image Text:Exercise 11-30 (Algo) Cost Allocation: Reciprocal Method (LO 11-1) 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 Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing From: Service department costs Repair Quality control Total $ 149,600 112,200 48,300 158,410 $ $ 0 0.3 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. Repair 48,300 $ 0.3 0 Cost Allocation To: Quality Control 0.6 0.1 Fabricating 158,410 $ 48,300 $ 158,410 $ 0.1 0.6 Finishing. of $ 0 $ 0
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