Lenser 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 $ 170,000 Engineering Support $ 190,000 Assembly $ 670,000 Finishing $ 1,020,000 The total cost accumulated in the assembly department using the direct method is: Note: Calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar.   Multiple Choice   $1,216,458.   $2,050,000.   $833,542.   $793,542.   $840,208.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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Lenser 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 $ 170,000
Engineering Support $ 190,000
Assembly $ 670,000
Finishing $ 1,020,000

The total cost accumulated in the assembly department using the direct method is:

Note: Calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar.

 

Multiple Choice
  •  
    $1,216,458.
  •  
    $2,050,000.
  •  
    $833,542.
  •  
    $793,542.
  •  
    $840,208.
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