Clark Company Has Two Production Departments,Tubing and Packing,and Two Service

Essay

Clark Company has two production departments,Tubing and Packing,and two service departments,Quality Control and Maintenance.In June,the Quality Control department provided 2,000 hours of service- 1,047 hours to Tubing,255 hours to Maintenance,and 698 hours to Packing.In the same month,Maintenance provided 3,240 hours to Tubing,1,890 hours to Packing,and 270 hours to Quality Control.Quality Control incurred costs of $100,000,and Maintenance incurred costs of $220,000.
Required:
Use the step method to allocate service department costs sequentially based on hours of service provided.Start with Maintenance and then allocate Quality Control.Check your solution by making certain that the firm finally allocates $320,000 to the production departments.