[The following information applies to the questions displayed below.] 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 Fabricating Finishing Repair Quality Control Proportion of Services Used by Direct Costs $ 140,600 98,200 42,000 78,400 Repair Quality Control Fabricating Finishing 0.3 0.3 0.4 0.2 0.3 0.5 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated t jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Fabricating Finishing Job MP-47: Machine-hours Labor-hours 20 80 70 10 Job MP-48: Machine-hours 30 45 Labor-hours 90 15 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Job MP-47 Job MP 48 Fabricating Finishing $ 9,424
[The following information applies to the questions displayed below.] 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 Fabricating Finishing Repair Quality Control Proportion of Services Used by Direct Costs $ 140,600 98,200 42,000 78,400 Repair Quality Control Fabricating Finishing 0.3 0.3 0.4 0.2 0.3 0.5 Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated t jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Fabricating Finishing Job MP-47: Machine-hours Labor-hours 20 80 70 10 Job MP-48: Machine-hours 30 45 Labor-hours 90 15 Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Job MP-47 Job MP 48 Fabricating Finishing $ 9,424
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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am.112.
![[The following information applies to the questions displayed below.]
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
Fabricating
Finishing
Repair
Quality Control
Proportion of Services Used by
Direct Costs
$ 140,600
Repair
Quality
Control
98,200
42,000
0
78,400
0.3
Fabricating
Finishing
0.4
0.3
0.2
0.5
Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to
jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in
each department are as follows:
Finishing
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Machine-hours
Labor-hours
Required:
Fabricating
20
80
70
10
30
45
90
15
How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job
MP-47? How much should be allocated to Job MP-48?
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.
Job MP-47
Job MP-48
Fabricating
Finishing
$
9,424](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77f27f90-d61a-4914-bc21-a591e7636e1a%2Ff6aeeea1-c62b-4b9f-9db3-bed74a58adf4%2Fqsw987e_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
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
Fabricating
Finishing
Repair
Quality Control
Proportion of Services Used by
Direct Costs
$ 140,600
Repair
Quality
Control
98,200
42,000
0
78,400
0.3
Fabricating
Finishing
0.4
0.3
0.2
0.5
Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to
jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in
each department are as follows:
Finishing
Job MP-47:
Machine-hours
Labor-hours
Job MP-48:
Machine-hours
Labor-hours
Required:
Fabricating
20
80
70
10
30
45
90
15
How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job
MP-47? How much should be allocated to Job MP-48?
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.
Job MP-47
Job MP-48
Fabricating
Finishing
$
9,424
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