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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
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 oints Purchasing Maintenance 108 308 30% 50% 0% 608 08 Skipped 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $96,000 18,000 72,000 48,000 The total cost accumulated in the assembly department using the direct method is (calculate all ratios and percentages to4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice 18 $114,600. points Salpped$85.800 $85,800. $135,000 $102.750. $131,250
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