Exercise $11-25$ & $11-26($Algo$)($LO $11-1)$

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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:

Department Direct Costs Proportion of Services Used by

Repair Quality Control Fabricating Finishing

Fabricating $ $145,600$

Finishing $108,200$

Repair $46,50000\mathrm{.}20\mathrm{.}50\mathrm{.}3$

Quality Control $86,9000\mathrm{.}600\mathrm{.}20\mathrm{.}2$

Exercise $11-25($Algo$)$ Cost Allocation: Direct Method $($LO $11-1)$

Required:

Compute the allocation of service department costs to producing departments using the direct method.