FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Proportion of Services Used by
Quality
Direct Costs
Repair Control
Fabricating
Finishing
$ 154,600
110,200
47,400
0
0.2
0.5
0.3
88,600
0.8
0
0.1
0.1
Exercise 11-25 (Algo) Cost Allocation: Direct Method (LO 11-1)
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
Fabricating
Finishing
Costs
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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: Department Fabricating Finishing Repair Quality Control Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 154,600 110,200 47,400 0 0.2 0.5 0.3 88,600 0.8 0 0.1 0.1 Exercise 11-25 (Algo) Cost Allocation: Direct Method (LO 11-1) 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 Fabricating Finishing Costs
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