Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments,...
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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: Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 134,600 Quality Control 98,200 42,000 224,000 0 0.3 0.3 0.5 0.2 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. Round your final answers to the nearest whole dollar amounts. Cost Allocation To: Quality From: Repair Control Fabricating Finishing Service department costs $ 42,000 $ 224,000 $ 0 $ 0 Repair (120,000) 36,000 Quality control 78,000 (260,000) Total $ 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 of March follow: Proportion of Services Used by Department Fabricating Finishing Repair Direct Costs Repair Quality Control Fabricating Finishing $ 134,600 Quality Control 98,200 42,000 224,000 0 0.3 0.3 0.5 0.2 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. Round your final answers to the nearest whole dollar amounts. Cost Allocation To: Quality From: Repair Control Fabricating Finishing Service department costs $ 42,000 $ 224,000 $ 0 $ 0 Repair (120,000) 36,000 Quality control 78,000 (260,000) Total $ 0 $ 0 $ 0 $ 0
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