Question: Exercise 11-28 (Static) Cost Allocation: Step Method (LO 11-1) Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service

Exercise 11-28 (Static) Cost Allocation: Step Method (LO 11-1) 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 Quality Control Required: Direct Costs Repair Quality Control $ 140,600 98,200 42,000 78,400 Fabricating Finishing 8.3 0.4 0.3 e 6.2 0.5 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 Ctrol. 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 found intermediate calculations. Cost Allocation To From: Quality Repair Control Fabricating Finishing Service department costs Repar Quality control Total costs allocated $ Required B > Required A Required B Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: From: Quality Control Repair Fabricating Finishing Service department costs Quality control Repair Total costs allocated S 0 $ 0$
Step by Step Solution
There are 3 Steps involved in it
Sure lets proceed with the step method for service cost allocation using the information provided in the screenshots The step method allocates service ... View full answer
Get step-by-step solutions from verified subject matter experts
