The Merchant Manufacturing Company has two service departments - purchasing and maintenance, and two production...
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Accounting
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: TO Purchasing Maintenance Fabrication Assembly Purchasing 08 558 108 Maintenance 458 158 FROM 35% 40% 08 The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $132,000 54,000 108,000 84,000 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)
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