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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

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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 department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0% 40% 45% 15% Maintenance 40% 0% 25% 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 ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice $157,000 $125 450 $151,550 $113,000 $119.700

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