Hartwicke Manufacturing 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: 
The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $120,000.Engineering Support $240,000.Assembly $660,000.Finishing $870,000.The total cost accumulated in the assembly 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) $1,890,000.
B) $827,143.
C) $837,750.
D) $1,062,857.
E) $1,033,450.
Correct Answer:
Verified
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