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 assembly 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):
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 assembly 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):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 assembly 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):
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