Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. Thedistribution of each service department's efforts to the other departments is shown below:SERVICE DEPARTMENTProduct DesignEngineering SupportThe direct operating costs of the departments (including both variable and fixed costs) were as follows:Product DesignEngineering SupportAssemblyFinishingMultiple Choice$631,492Design0%20%$1,018.633.SERVICES PROVIDED TO$ 162,000$ 142,000$ 552,000$ 842,000Support10%0%The total cost accumulated in the assembly department using the step 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. Assume that the engineering support department goes first):Assembly30%45%Finishing.60%35%

The various methods for cost allocation are direct, step and reciprocal. The step method allocates…

Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step 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. Assume that the engineering support department goes first):

Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step 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. Assume that the engineering support department goes first):

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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