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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 Purchasing Maintenance TO Purchasing Maintenance Fabrication Assembly 04 404 45% 154 40% 04 254 35 The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $105,000 27,000 81,000 57.000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first calculate all tatios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollars: Multiple Choice $119.700 $157000 5125450 a S13.000 3154550
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