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In: Accounting

Barstow Manufacturing Company has two service departments — product design and engineering support, and two production...

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):

A. $1,890,000
B. $682,551
C. $1,007,449
D. $1,062,857
E. $627,143

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