The Merchant Manufacturing Company has two service departments – purchasing and maintenance, and two

The Merchant Manufacturing Company has two service departments – purchasing and maintenance, and two

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 Purchasing Purchasing Maintenance 0% Maintenance Fabrication 60% 10% 0% 30% Assembly 30% 50% 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 step 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 | o $136,500. o $130,750. o $124,050. o $109,950. o $104,500.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts