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 Direct Costs Proportion of Services Used by Repair Quality Control Fabricating Finishing Fabricating $ 139,600         Finishing 108,200         Repair 46,500 0 0.2 0.6 0.2 Quality Control 86,900 0.6 0 0.1 0.3   Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.   Total Allocated Costs         Fabricating           Finishing

sanju

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 Direct Costs Repair Quality Control Fabricating Finishing Fabricating $ 136,600         Finishing 102,200         Repair 43,800 0 0.2 0.6 0.2 Quality Control 81,800 0.8 0 0.1 0.1 Required: Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. The allocations are made in the reverse order (starting with Quality Control).   Complete this question by entering your answers in the tabs below.   Required A Required B Use the step method to allocate the service costs, using the following:The order of allocation starts with Repair.Note: Amounts to be deducted should be indicated by a…

Domestic

A-2

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    50,000  The costs incurred in the plant are as follows:   Departments    Departmental CostsSourcing    $ 177,000Operations    225,000Assembly    418,000Finishing    263,000Total    $ 1,083,000  1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method?

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