Required information
Exercise & AlgoLO
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:
Exercise Algo Allocating Service Department Costs First to Production Departments and Then to
Jobs LO
Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP and MP Costs are allocated to
jobs based on laborhours in Fabricating and machinehours in Finishing. The number of laborhours and machinehours worked in
each department are as follows:
Required:
How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job
MP How much should be allocated to Job MP
Note: Round "Department rate" to decimal places. Do not round other intermediate calculations. Round final answers to the
nearest whole dollar.
