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Help Save 8 Bit 7 Clothing Company has two service departments purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of
Help Save 8 Bit 7 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 1:47 TO Maintenance 30% 0% Purchasing 0% 70% Fabrication 45% 20% Assembly 25% 10% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $ 147,000 69,000 123,000 99,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first calculate al ratios and percentages to decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice
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