$516,301$1,770,842.$571,709$943,699.$888,2916 Fans Company has two service departments - product design and engineering support, and two production departments-assembly and finishThe distribution of each service department's efforts to the other departments is shown below:SERVICE DEPARTMENTProduct DesignEngineering SupportThe direct operating costs of the departments (including both variable and fixed costs) were as follows:Product DesignEngineering SupportAssemblyFinishingSERVICES PROVIDED TODesign0820%Multiple Choice$ 145,000$ 155,000$ 440,000$ 720,000Support10%08Assembly30%45%Finishing60%35%The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, fexample 33.3333%, and round all dollar amounts to the nearest whole dollar):

Reciprocal method is most accurate method of allocating cost in different departments. They transfer…

Answered: The total cost accumulated in the…

The total cost accumulated in the assembly department using the reciprocal method is (ca example 33 3333% and round dollar

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

$516,301
$1,770,842.
$571,709
$943,699.
$888,291
6

Fans Company has two service departments - product design and engineering support, and two production departments-assembly and finish
The distribution of each service department's efforts to the other departments is shown below:
SERVICE DEPARTMENT
Product Design
Engineering Support
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Product Design
Engineering Support
Assembly
Finishing
SERVICES PROVIDED TO
Design
08
20%
Multiple Choice
$ 145,000
$ 155,000
$ 440,000
$ 720,000
Support
10%
08
Assembly
30%
45%
Finishing
60%
35%
The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, f
example 33.3333%, and round all dollar amounts to the nearest whole dollar):

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