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Fans Company has two service departments product design and engineering support, and two production...

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Accounting

Fans 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:
SERVICE DEPARTMENT SERVICES PROVIDED TO
Design Support Assembly Finishing
Product Design 0%10%30%60%
Engineering Support 20%0%45%35%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Product Design $ 240,000
Engineering Support $ 260,000
Assembly $ 950,000
Finishing $ 1,440,000

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