The Merchant Manufacturing Company has two service departments purchasing and maintenance, and two production...

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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%		60%	10%	30%
Maintenance		20%		0%	30%	50%

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

	Purchasing		$89,600
	Maintenance		$16,700
	Fabrication		$65,500
	Assembly		$44,900

The total cost accumulated in the assembly department using the step method is (assume the purchasing department goes first):
$115,818
$94,163
$100,883
$122,538
$108,350

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