Question

Barstow 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:

FROMTO DesignSupportAssemblyFinishingDesign 0% 10% 30% 60%Support 20% 0% 45% 35%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

  Design$140,000 Engineering Support$160,000 Assembly$550,000 Finishing$840,000 

The total cost accumulated in the finishing department using the direct 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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