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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 efforts to the
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 TO
Purchasing Maintenance Fabrication Assembly
Purchasing
Maintenance
The direct operating costs of the departments including both variable and fixed costs were as follows:
Purchasing $
Maintenance
Fabrication
Assembly
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 decimal places, for example and round all dollar amounts to the nearest whole dollar:
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