Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair
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Question:
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 $
Finishing
Repair
Quality Control
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.
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