The Merchant Manufacturing 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 TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 55 % 35 % 10 % Maintenance 45 % 0 % 40 % 15 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 132,000 Maintenance 54,000 Fabrication 108,000 Assembly 84,000 The total cost accumulated in the fabrication 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 $249,940. $191,100. $274,159. $128,060. $88,364.
The Merchant Manufacturing 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 TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 55 % 35 % 10 % Maintenance 45 % 0 % 40 % 15 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 132,000 Maintenance 54,000 Fabrication 108,000 Assembly 84,000 The total cost accumulated in the fabrication 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 $249,940. $191,100. $274,159. $128,060. $88,364.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Merchant Manufacturing 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 | TO | |||||||||||
| Purchasing | Maintenance | Fabrication | Assembly | |||||||||
| Purchasing | 0 | % | 55 | % | 35 | % | 10 | % | ||||
| Maintenance | 45 | % | 0 | % | 40 | % | 15 | % | ||||
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
| Purchasing | $ | 132,000 | |
| Maintenance | 54,000 | ||
| Fabrication | 108,000 | ||
| Assembly | 84,000 | ||
The total cost accumulated in the fabrication 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
-
$249,940.
-
$191,100.
-
$274,159.
-
$128,060.
-
$88,364.
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