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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 39 25% 55% 55% 09 30% Assembly 200 158 The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $150,000 72,000 126,000 102,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first, calculate all ratlos and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice $276,050 $281.500 o o o o $168,500 $175,200.
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