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	Direct Costs	Proportion of Services Used by
		Repair	Quality Control	Fabricating	Finishing
Fabricating	$ 140,600
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.)

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

From:	Cost Allocation To:
	Repair	Quality Control	Fabricating	Finishing
Service department costs
Repair
Quality control
Total	$0	$0	$0	$0

Answer rating: 100% (QA)

Answer Solution Woking Let us we assume R Repair Q Quality Control So R 42000 03Q Equation No 1 ... View the full answer