The Sakicki 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:
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Purchasing $96,000.Maintenance 18,000.Fabrication 72,000.Assembly 48,000.The total cost accumulated in the fabrication department using the reciprocal 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) :
A) $114,800.
B) $117,909.
C) $116,091.
D) $108,000.
E) $119,200.
Correct Answer:
Verified
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