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The Merchant Manufacturing Company has two service departments -- purchasing and maintenance, and two production departments -- fabrication and assembly. The distribution of each service
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 TO Purchasing Maintenance Fabrication Assembly Purchasing 04 159 754 10% Maintenance 554 09 354 104 The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $156,000 78,000 132,000 188,800 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 $88,000 $330.314 $143.686. $423.900 $395.100
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