The Merchant Manufacturing Company has two service departments purchasing and maintenance, and two production...
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Accounting
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 | % | 55 | % | 30 | % | 15 | % | ||||
| Maintenance | 35 | % | 0 | % | 50 | % | 15 | % | ||||
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
| Purchasing | $ | 126,000 | |
| Maintenance | 48,000 | ||
| Fabrication | 102,000 | ||
| Assembly | 78,000 | ||
The total cost accumulated in the fabrication 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):
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