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:
tableProportion of Services Used byDepartmentDirect Costs,Repair,tableQualityControlFabricating,FinishingFabricating$FinishingRepairQuality Control,
Required:
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 Control
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Required A
Required B
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