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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
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 Product Design Engineering Support SERVICES PROVIDED TO Design 0% 20% Support 10% 0% Assembly Finishing 30% 60% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly $ 270,000 $ 290,000 $ 1,070,000 Finishing $ 1,620,000 The total cost accumulated in the assembly department using the direct 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):
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