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HELP Clothing Company has two service departments -- purchasing and maintenance, and two production departments -- fabrication and assembly. The distribution of each service department's
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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 other departments is shown below. TO FROM Purchasing Maintenance Fabrication Assembly Purchasing ex 45% 4ex 15% Maintenance ex 35% 3ex The direct operating costs of the departments (including both variable and fixed costs) were as follows: 35% Purchasing $ 108,000 Maintenance 30,000 Fabrication 84 , Assembly 6 , 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) O $124,927 O $169,523 O $112,477. O $164,073 O $119,177 Step by Step Solution
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