Question

PART A:

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	%		10	%		80	%
Support	10	%		0	%		40	%		50	%

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

Design	$	80,000
Engineering Support	$	320,000
Assembly	$	490,000
Finishing	$	730,000

The total cost accumulated in the assembly 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):

• $1,041,570.

• $633,838.

• $1,868,713.

• $578,430.

• $986,162.

PART B:

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	%		70	%		20	%		10	%
Maintenance		30	%		0	%		55	%		15	%

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

Purchasing	$	123,000
Maintenance		45,000
Fabrication		99,000
Assembly		75,000

The total cost accumulated in the assembly 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):

• $63,643.

• $125,643.

• $94,800.

• $123,600.

• $216,357.

Answer 1