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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
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 0% 10% 30% 60% Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $140, 000 Engineering Support $160, 000 Assembly $550, 000 Finishing $840, 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 O $682.551. O $1,062.857. $627.143. O $1,007.449. O $1,890,000
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