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 $ 300,000 Engineering Support $ 320,000 Assembly $ 1,190,000 Finishing $ 1,800,000 The total cost accumulated in the assembly 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): Multiple Choice $2,140,000. $3,610,000. $1,470,000. $1,430,000. $1,476,666.
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 $ 300,000 Engineering Support $ 320,000 Assembly $ 1,190,000 Finishing $ 1,800,000 The total cost accumulated in the assembly 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): Multiple Choice $2,140,000. $3,610,000. $1,470,000. $1,430,000. $1,476,666.
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 | $ | 300,000 | |
| Engineering Support | $ | 320,000 | |
| Assembly | $ | 1,190,000 | |
| Finishing | $ | 1,800,000 | |
The total cost accumulated in the assembly 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):
Multiple Choice
-
$2,140,000.
-
$3,610,000.
-
$1,470,000.
-
$1,430,000.
-
$1,476,666.
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