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A manufacturer has two service departments - purchasing and maintenance, and two production departments -fabrication and assembly. The distribution of each service department's efforts to
A manufacturer has two service departments - purchasing and maintenance, and two production departments -fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: Purch. Maint. -- 70% Purchasing Maintenance Fabric. Assem. 15% 15% 25% 50% The direct operating costs of the departments were as follows: Purchasing $96,000. Maintenance 18,000. Fabrication 72,000 Assembly 48,000. The company uses the step method to allocate service department costs (purchasing department goes first in allocation sequence). Determine the total costs assigned to Fabrication Department. Include both direct and indirect costs
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