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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 Fabricating Finishing Repair Quality Control Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 134,600 Machine-hours Labor-hours Fabricating Finishing Fabricating 98,200 42,000 78,400 Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 36 86 Repair 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: 30 90 0 0.6 Finishing BO 10 Proportion of Services Used by Quality Control 61 31 0.2 0 Fabricating Finishing 0.5 0.2 0.3 0.2 Job MP-47 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: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. Job MP-48

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 Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 134,600 Machine-hours Labor-hours Fabricating Finishing Fabricating 98,200 42,000 78,400 Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 36 86 Repair 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: 30 90 0 0.6 Finishing BO 10 Proportion of Services Used by Quality Control 61 31 0.2 0 Fabricating Finishing 0.5 0.2 0.3 0.2 Job MP-47 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: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. Job MP-48

Cornerstones of Cost Management (Cornerstones Series)
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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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 Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 134,600 98,200 42,000 78,400 Machine-hours Labor-hours Fabricating Finishing Fabricating Repair Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 36 86 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: 30 90 0 0.6 BO 10 Finishing 61 31 Proportion of Services Used by Quality Control 0.2 0 Fabricating Finishing 0.5 0.2 0.3 0.2 Job MP-47 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: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. Job MP-48
Transcribed Image Text: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 Job MP-47: Machine-hours Labor-hours Job MP-48: Direct Costs $ 134,600 98,200 42,000 78,400 Machine-hours Labor-hours Fabricating Finishing Fabricating Repair Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) 36 86 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: 30 90 0 0.6 BO 10 Finishing 61 31 Proportion of Services Used by Quality Control 0.2 0 Fabricating Finishing 0.5 0.2 0.3 0.2 Job MP-47 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: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. Job MP-48
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