Required information [The following information applies to the questions displayed below.] 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 Direct Costs $ 144,600 106,200 45,600 Repair Quality Control Fabricating Finishing 0 0.2 0.6 0.2 Quality Control 85,200 0.6 0 0.2 0.2 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Munabhai 

Required information
[The following information applies to the questions displayed below.]
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
Direct Costs
$ 144,600
106,200
45,600
Repair
Quality
Control
Fabricating Finishing
0
0.2
0.6
0.2
Quality Control
85,200
0.6
0
0.2
0.2
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
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 Direct Costs $ 144,600 106,200 45,600 Repair Quality Control Fabricating Finishing 0 0.2 0.6 0.2 Quality Control 85,200 0.6 0 0.2 0.2 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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