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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 Design Support TO Design Support Assembly Finishing 0% 10% 20% 70% 20% 0% 30% 50% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design Engineering Support Assembly Finishing $120,000 $280,000 $440,000 $860,000 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 $1,190,102. $509,898. $1,134,694. $2,017,245. $565,306
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