Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service...
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Accounting
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 Quality Control Direct Costs Repair $ 140,600 98,200 42,000 78,400 0 0.3 0.3 0 Fabricating Finishing 0.4 0.2 0.3 0.5. Use the reciprocal method to allocate the service costs. (matrix algebra is not required.)
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