Question
Barstow Manufacturing Company has two service departments - product design and engineering support, and two production departments - assembly and finishing. The distribution of
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 Design Support Assembly Finishing Design Support 0% 10% 10% 80% 10% 0% 30% 60% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design Engineering Support Assembly Finishing $100,000 $100,000 $430,000 $720,000 The total cost accumulated in the assembly department using the reciprocal 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): Multiple Choice $875,556. $419,036. $474,444. $930,964. $1,758,107.
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