Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 % 55 % 30 % 15 %
Maintenance 35 % 0 % 50 % 15 %

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

Purchasing $ 126,000
Maintenance 48,000
Fabrication 102,000
Assembly 78,000

The total cost accumulated in the fabrication 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

  • $222,923.

  • $180,300.

  • $271,558.

  • $131,077.

  • $70,615.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions