Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30 % 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 164,000 Engineering Support $ 144,000 Assembly $ 554, 000 Finishing $ 844,000 The total cost accumulated in the finishing 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 assume that the engineering support department goes first): Multiple Choice $1,022,933. $1,906,000. $683,067. $635, 192. $945,808.

Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30 % 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 164,000 Engineering Support $ 144,000 Assembly $ 554, 000 Finishing $ 844,000 The total cost accumulated in the finishing 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 assume that the engineering support department goes first): Multiple Choice $1,022,933. $1,906,000. $683,067. $635, 192. $945,808.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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