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 %   30 %   45 %   25 % Maintenance   70 %   0 %   20 %   10 %     The direct operating costs of the departments (including both variable and fixed costs) were as follows:           Purchasing $ 147,000   Maintenance   69,000   Fabrication   123,000   Assembly   99,000       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 a. $259,100. b.$264,550. c. $173,450. d. $180,150. e. $185,900.

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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 other departments is shown below:

 

FROM TO
  Purchasing Maintenance Fabrication Assembly
Purchasing   0 %   30 %   45 %   25 %
Maintenance   70 %   0 %   20 %   10 %
 

 

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

 

       
Purchasing $ 147,000  
Maintenance   69,000  
Fabrication   123,000  
Assembly   99,000  
 

 

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

  • a. $259,100.
  • b.$264,550.
  • c. $173,450.
  • d. $180,150.
  • e. $185,900.
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