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 o March follow: Department Fabricating Finishing Repair Quality Control Required: Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 134,600 98,200 42,000 0 0.2 0.5 0.3 78,400 0.6 0 0.2 0.2 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). 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 allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: From: Quality Control Repair Fabricating Finishing Service department costs Quality control Repair Total costs allocated 0 $ 0 $ 0 $ 0
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 o March follow: Department Fabricating Finishing Repair Quality Control Required: Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 134,600 98,200 42,000 0 0.2 0.5 0.3 78,400 0.6 0 0.2 0.2 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). 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 allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: From: Quality Control Repair Fabricating Finishing Service department costs Quality control Repair Total costs allocated 0 $ 0 $ 0 $ 0
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 5E: Crystal Scarves Co. produces winter scarves. The scarves are produced in the Cutting and Sewing...
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