Clothing 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 Purchasing Maintenance TO Purchasing 0% 40% Maintenance 60% 0% Fabrication Assembly 30% 45% 10% 15% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $ 129,000 51,000 105,000 81,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; 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 $234,550
Clothing 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 Purchasing Maintenance TO Purchasing 0% 40% Maintenance 60% 0% Fabrication Assembly 30% 45% 10% 15% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $ 129,000 51,000 105,000 81,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; 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 $234,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Clothing 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:
TO
FROM
Purchasing
Maintenance
Purchasing
0%
40%
Maintenance
60%
Fabrication Assembly
30%
45%
10%
15%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Purchasing
Maintenance
Fabrication
$ 129,000
51,000
105,000
81,000
Assembly
The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; 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
$234,550.
$132,700
$126,000
$240,000.
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