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 Proportion of Services Used by Direct CostsRepairQuality ControlFabricatingFinishingFabricating $ 1,40,600 Finishing $ 98,200 Repair $ 42,00000.30.40.3Quality Control $ 78,4000.300.20.5Required:Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations

Cost allocation is allocation of the cost of service departments to the production departments. This…

Answered: Mack Precision Tool and Die has two…

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...

See similar textbooks

Related questions

Concept explainers

Question

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		Proportion of Services Used by
	Direct Costs	Repair	Quality Control	Fabricating	Finishing
Fabricating	$ 1,40,600
Finishing	$ 98,200
Repair	$ 42,000	0	0.3	0.4	0.3
Quality Control	$ 78,400	0.3	0	0.2	0.5

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions