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SERVICE DEPARTMENT Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each
SERVICE DEPARTMENT 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: SERVICES PROVIDED TO Product Design Engineering Support Design 0% 20% Support 10% Assembly 30% Finishing 60% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support $ 140,000 $ 160,000 Assembly Finishing $ 550,000 $ 840,000 The total cost accumulated in the finishing 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 $1,890,000. $627,143. $682,551. $1,062,857. $1,007,449.
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