Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair andQuality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month ofMarch follow:Proportion of Services Used byDepartmentFabricatingFinishingRepairQuality ControlRequired:Direct CostsRepairQualityControlFabricating Finishing$ 137,600104,20044,700195,89000.30.30.50.200.20.5Use 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 finalanswers to the nearest whole dollar amounts.

The objective of the question is to allocate the service costs of the Repair and Quality Control…

Answered: Mack Precision Tool and Die has two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Logan Products has two production departments—assembly and finishing. These are supported by two service departments—sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by DepartmentsSourcing Operations Assembly FinishingSourcing - 20,000 40,000 60,000Operations 10,000 - 60,000 50,000The costs incurred in the plant are as follows: Departments Departmental CostsSourcing $ 177,000Operations 225,000Assembly 418,000Finishing 263,000Total $ 1,083,000 What are the total costs in the production departments after allocation?
Haresh
Rahul
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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 From: Direct Costs Repair $ 147,600 Service department costs Repair Quality control Total 112, 200 48,300 140, 210 $ Repair 8 0.3 0 $ Proportion of Services Used by Quality Control Fabricating 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. 0.3 Cost Allocation To: Quality Control 0.5 8.2 Fabricating $ Finishing 0.2 0.5 0 $ Finishing
8. Lisa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240 160 Number of employees 10 20 40 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? Select one: a. $60,000 b. $32,000 c. $12,800 d. $24,000 e. $16,000
Haresh
Calley's Cakes Inc. produces quality specialty cakes. Her cakes move through two departments: Baking and Frosting. The company uses departmental overhead rates to allocate overhead costs. Overheads are allocated based on oven-hours for Baking and direct labour cost for Frosting. Information related to costs for last month is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Baking department Frosting department Oven-hours per unit Baking department Frosting department 10-inch cake. 5,900 5.40 5.00 7.50 0.25 0.00 8-inch glazed cake 9,350 4.30 4.50 8.00 0.25 0.50 In addition, the company budgets manufacturing overhead at $49,250 in the Baking department and $55,500 in the Frosting department. Required: 1. Determine the overhead application rate for each department 2. Determine the total cost per unit of the two types of cakes (10-inch and 8-inch glazed)
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: 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.
Dhepa
Sagar
sanju

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