Barstow Manufacturing Company has two service departments product design and engineering support, and two...
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Accounting
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 $ 160,000 Engineering Support $ 180,000 Assembly $ 630,000 Finishing $ 960,000
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):
Multiple Choice
- $1,145,417.
- $1,930,000.
- $784,583.
- $744,583.
- $791,249.
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