-7 Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service...

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-7 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 Conte Repair $ 135,600 Quality Control Fabricating Finishing 100,200 Quality Control 42,900 80,100 0 0.2 0.6 0.2 0.8 0 0.1 0.1 Required: 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 order of allocation starts with Repair. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department costs Repair Quality control Total costs allocated Cost Allocation To: Quality Repair Control Fabricating Finishing -7 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 Conte Repair $ 135,600 Quality Control Fabricating Finishing 100,200 Quality Control 42,900 80,100 0 0.2 0.6 0.2 0.8 0 0.1 0.1 Required: 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 order of allocation starts with Repair. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department costs Repair Quality control Total costs allocated Cost Allocation To: Quality Repair Control Fabricating Finishing

Answer rating: 100% (QA)

Answer Required A To allocate the service costs using the step method we will follow the order of allocation starting with Repair Step 1 Allocate Repair department costs Repair department costs are al... View the full answer