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 Design (S1) 0% 20% Support(S2) 10% 0% TO $160,000 $140,000 $550,000 $840,000 Assembly (P1) 30% 45% Design (S1) Support (S2) The direct operating costs of the departments were as follows: Design (S1) Engineering Support (S2) Assembly (P1) Finishing (P2) Finishing (P2) 60% 35%
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 Design (S1) 0% 20% Support(S2) 10% 0% TO $160,000 $140,000 $550,000 $840,000 Assembly (P1) 30% 45% Design (S1) Support (S2) The direct operating costs of the departments were as follows: Design (S1) Engineering Support (S2) Assembly (P1) Finishing (P2) Finishing (P2) 60% 35%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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narubhai
Transcribed Image Text:2. Calculation Questions
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
Design (S1)
0%
20%
Support(S2)
10%
0%
TO
$160,000
$140,000
$550,000
$840,000
Assembly (P1)
30%
45%
Design (S1)
Support (S2)
The direct operating costs of the departments were as follows:
Design (S1)
Engineering Support (S2)
Assembly (P1)
Finishing (P2)
Finishing(P2)
60%
35%
Transcribed Image Text:Additional Practice (after class): Calculate the total cost accumulated in the finishing
department (P2) using direct, step and reciprocal method respectively.
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