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Clothing Company has two service departments - purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of each service department's
Clothing Company 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: FROM Purchasing Maintenance Purchasing 0% 30% Maintenance Fabrication Assembly 20% 55% 10% 15% 70% 0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $ 123,000 45,000 99,000 75,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; 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 $122,093. $115,393. $127,843. $226,607. $221,157.
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