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Barstow Manufacturing Company has two service departments - product design and engineering support, and two production departments-assembly and finishing. The distribution of each service
Barstow Manufacturing Company has two service departments - product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: FROM TO Design Support Assembly Finishing Design Support 0% 20% 10% 0% 30% 45% 60% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design Engineering Support Assembly Finishing $140,000 $160,000 $550,000 $840,000 The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume that the design department goes first): Multiple Choice $689,875. $642,000. $923,000. $1,000,125. $1,890,000.
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