Fans 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: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 105,000 Engineering Support $ 195,000 Assembly $ 540,000 Finishing $ 790,000 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):
Fans 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: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 105,000 Engineering Support $ 195,000 Assembly $ 540,000 Finishing $ 790,000 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):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fans 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:
| SERVICE DEPARTMENT | SERVICES PROVIDED TO | |||
|---|---|---|---|---|
| Design | Support | Assembly | Finishing | |
| Product Design | 0% | 10% | 30% | 60% |
| Engineering Support | 20% | 0% | 45% | 35% |
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
| Product Design | $ 105,000 |
|---|---|
| Engineering Support | $ 195,000 |
| Assembly | $ 540,000 |
| Finishing | $ 790,000 |
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):
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