Clothing Company has two service departments purchasing and maintenance, and two production departments ...
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Accounting
Clothing 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%
50%
35%
15%
Maintenance
30%
0%
45%
25%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Purchasing
$ 111,000
Maintenance
33,000
Fabrication
87,000
Assembly
63,000
The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; 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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