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 % 20 % 10 % 70 % Support 10 % 0 % 30 % 60 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $ 110,000 Engineering Support $ 490,000 Assembly $ 440,000 Finishing $ 700,000 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): Multiple Choice $2,009,592. $557,551. $612,959. $1,182,449. $1,127,041.
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 % 20 % 10 % 70 % Support 10 % 0 % 30 % 60 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $ 110,000 Engineering Support $ 490,000 Assembly $ 440,000 Finishing $ 700,000 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): Multiple Choice $2,009,592. $557,551. $612,959. $1,182,449. $1,127,041.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | % | 20 | % | 10 | % | 70 | % | |||
| Support | 10 | % | 0 | % | 30 | % | 60 | % | |||
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
| Design | $ | 110,000 |
| Engineering Support | $ | 490,000 |
| Assembly | $ | 440,000 |
| Finishing | $ | 700,000 |
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):
Multiple Choice
-
$2,009,592.
-
$557,551.
-
$612,959.
-
$1,182,449.
-
$1,127,041.
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