Question
Fans 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
Fans 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:
SERVICE DEPARTMENT | SERVICES PROVIDED TO | |||
---|---|---|---|---|
Design | Support | Assembly | Finishing | |
Product Design | 0% | 10% | 30% | 60% |
Engineering Support | 20% | 0% | 45% | 35% |
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Product Design | $ 135,000 |
---|---|
Engineering Support | $ 65,000 |
Assembly | $ 520,000 |
Finishing | $ 770,000 |
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
-
$944,056.
-
$601,352.
-
$1,771,199.
-
$545,944.
-
$888,648.
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