Fans Company has two service departments-product design and engineering support, and two production departments - assembly andfinishing. The distribution of each service department's efforts to the other departments is shown below:DesignSERVICE DEPARTMENTProduct Design0%Engineering Support20%The direct operating costs of the departments (including both variable and fixed costs) were as follows:Product DesignEngineering SupportAssemblyFinishingMultiple Choice$1,863,265SERVICES PROVIDED TOSupport10%0%$623,878$1,036,122Assembly30%45%$100,000$ 200,000$540,000$ 820,000The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimalplaces, for example 33.3333%, and round all dollar amounts to the nearest whole dollar)Finishing60%35%D please note not all MC options arevisible:-1,863,265-623,878-1,036,122-980,714-679,286

for the allocation of cost to the different department it is important to consider the cost that has…

tiple Choice CE DEPARTMENT ct Design mering Support Et operating costs of the departments (including both variable and fixed costs) were as follows: at Design mering Support bly hing Design 0% 20% $1,863.265 SERVICES PROVIDED TO $1.036.122 $ 100,000 $ 200,000 $ 540,000 $ 820,000 Support 10% 0x Assembly 30% 45% cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal or example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35%

tiple Choice CE DEPARTMENT ct Design mering Support Et operating costs of the departments (including both variable and fixed costs) were as follows: at Design mering Support bly hing Design 0% 20% $1,863.265 SERVICES PROVIDED TO $1.036.122 $ 100,000 $ 200,000 $ 540,000 $ 820,000 Support 10% 0x Assembly 30% 45% cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal or example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35%

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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