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 Required: Use the step method to allocate the service costs, using the following: Required B Direct Costs Repair Control $ 148,600 114,200 49,200 92,000 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). From: Complete this question by entering your answers in the tabs below. Service department costs Quality control Proportion of Services Used by Quality Repair Total costs allocated Required A Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: $ Quality Control 0 S Fabricating Finishing Repair < Required A 0.5 8.1 Fabricating 0 S Finishing 0 S 0.3 0.1 Required B > 0
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 Required: Use the step method to allocate the service costs, using the following: Required B Direct Costs Repair Control $ 148,600 114,200 49,200 92,000 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). From: Complete this question by entering your answers in the tabs below. Service department costs Quality control Proportion of Services Used by Quality Repair Total costs allocated Required A Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: $ Quality Control 0 S Fabricating Finishing Repair < Required A 0.5 8.1 Fabricating 0 S Finishing 0 S 0.3 0.1 Required B > 0
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...
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