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 % 30 % 45 % 25 % Maintenance 70 % 0 % 20 % 10 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 147,000 Maintenance 69,000 Fabrication 123,000 Assembly 99,000 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): Multiple Choice a. $259,100. b.$264,550. c. $173,450. d. $180,150. e. $185,900.
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 % 30 % 45 % 25 % Maintenance 70 % 0 % 20 % 10 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 147,000 Maintenance 69,000 Fabrication 123,000 Assembly 99,000 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): Multiple Choice a. $259,100. b.$264,550. c. $173,450. d. $180,150. e. $185,900.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...
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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 | % | 30 | % | 45 | % | 25 | % | ||||
| Maintenance | 70 | % | 0 | % | 20 | % | 10 | % | ||||
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
| Purchasing | $ | 147,000 | |
| Maintenance | 69,000 | ||
| Fabrication | 123,000 | ||
| Assembly | 99,000 | ||
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):
Multiple Choice
-
a. $259,100.
-
b.$264,550.
-
c. $173,450.
-
d. $180,150.
-
e. $185,900.
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