Question

Barstow Manufacturing Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: FROM TO Design Support Assembly Finishing Design 0% 10% 30% 60% Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $140,000 Engineering Support $160,000 Assembly $550,000 Finishing $840,000 The total cost accumulated in the finishing department using the reciprocal 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): $1,062,857. $627,143. $682,551. $1,007,449. $1,890,000.

Answer 1

Answer:

	Design	Support	Assembly	Finishing
Operating cost of department	140000	160000	550000	840000
Allocated design cost to other department in proportionate of 10:30:60 respectively	-140000	14000	42000	84000
Total	0	174000	592000	924000
Allocated support cost to other department in proportionate of 20:45:35 respectively	34800	-174000	78300	60900
Total	34800	0	670300	984900
Allocated design cost to other department in proportionate of 10:30:60 respectively	-34800	3480	10440	20880
Total	0	3480	680740	1005780
Allocated support cost to other department in proportionate of 20:45:35 respectively	696	-3480	1566	1218
Total	696	0	682306	1006998
Allocated design cost to other department in proportionate of 10:30:60 respectively	-696	70	209	418
Total	0	70	682515	1007416
Allocated support cost to other department in proportionate of 20:45:35 respectively	14	-70	32	25
Total	14	0	382547	1007441
Allocated design cost to other department in proportionate of 10:30:60 respectively	-14	1	4	8
Total	0	1	382551	1007449
Allocated support cost to other department in proportionate of 20:45:35 respectively	0	-1	0.45	0.35
Department overhead after allocation	0	0	382551	1007449
Cost accumulated in the finishing department using the reciprocal method				1007449