Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Merchant Manufacturing Company has two service departments - purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of each

image text in transcribed

The Merchant Manufacturing 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 Te're Purchasing Maintenance 60% 20% Fabrication 10% Assembly 30% 30% 50% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication $96,000 18,000 72,000 Assembly 48,000 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): Multiple Choice $102,750. $85,800. $114,600. $135,000. $131,250.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

9th edition

9781285401072, 1111971722, 1285401077, 978-1111971724

More Books

Students also viewed these Accounting questions

Question

1. Does providing good value mean selling at a low price?

Answered: 1 week ago