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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

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% 10% 50%

Maintenance 10% 0% 20% 70%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

Purchasing $66,500

Maintenance $12,600

Fabrication $49,300

Assembly $33,000

The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first):

A. $98,217

B. $63,183

C. $80,700

D. $96,739

E. $64,661

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