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

image text in transcribedimage text in transcribed

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 Maintenance Fabrication 40% 25% 25% Purchasing 0% 60% Purchasing Maintenance Assembly 35% 15% 0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $141,000 63,000 117,000 93,000 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 $269,400. $215,125. $131,625. $258,000. $198,875

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_2

Step: 3

blur-text-image_3

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

Project Management Accounting Budgeting Tracking And Reporting Costs And Profitability

Authors: Kevin R. Callahan, Gary S. Stetz, Lynn M. Brooks

1st Edition

0470044691, 978-0470044698

More Books

Students also viewed these Accounting questions