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: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 140,600 98,200 42,000 0.3 0.4 0.3 78,400 0.3 Ө 0.2 0.5 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Answer is not complete. 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 minus sign. Do not round intermediate calculations. Cost Allocation To: From: Quality Repair Control Fabricating Finishing Service department costs $ Repair 42,000 (42,000) $ 78,400 ( S 0 $ 0 12,600 16,800 12,600 Quality control 0 (91,000) Total costs allocated $ 0 $ 0 0 × 16,800 0 $ 12,600
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: Proportion of Services Used by Direct Costs Repair Quality Control Fabricating Finishing $ 140,600 98,200 42,000 0.3 0.4 0.3 78,400 0.3 Ө 0.2 0.5 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Answer is not complete. 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 minus sign. Do not round intermediate calculations. Cost Allocation To: From: Quality Repair Control Fabricating Finishing Service department costs $ Repair 42,000 (42,000) $ 78,400 ( S 0 $ 0 12,600 16,800 12,600 Quality control 0 (91,000) Total costs allocated $ 0 $ 0 0 × 16,800 0 $ 12,600
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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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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
$ 140,600
98,200
42,000
@
0.3
0.4
0.3
78,400
0.3
0
0.2
0.5
Use the step method to allocate the service costs, using the following:
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
Answer is not complete.
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 minus sign. Do not round intermediate calculations.
Cost Allocation To:
From:
Quality
Repair
Control
Fabricating
Finishing
Service department costs
$
Repair
42,000 S
(42,000)
78,400 S
0 $
0
12,600
16,800
12,600
Quality control
0
(91,000)
0
0
Total costs allocated
S
0
$
0
S
16,800
$
12,600
< Required A
Required B >
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