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: Proportion of Services Used by Department Fabricating Finishing Repair Quality Control Required: Direct Costs Repair Quality Control Fabricating Finishing $ 137,600 104,200 44,700 195,890 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Proportion of Services Used by
Department
Fabricating
Finishing
Repair
Quality Control
Required:
Direct Costs
Repair
Quality
Control
Fabricating Finishing
$ 137,600
104,200
44,700
195,890
0
0.3
0.3
0.5
0.2
0
0.2
0.5
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.
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: Proportion of Services Used by Department Fabricating Finishing Repair Quality Control Required: Direct Costs Repair Quality Control Fabricating Finishing $ 137,600 104,200 44,700 195,890 0 0.3 0.3 0.5 0.2 0 0.2 0.5 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.
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