Barstow Manufacturing Company Has Two Service Departments — Product Design

question 63

Multiple Choice

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: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) $627,143.
• C) $682,551.
• D) $1,062,857.
• E) $1,007,449.

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Definitions:

Geographical Areas

Specific locations or regions defined by natural or artificial boundaries.

Supplier’s Attempt

Refers to the efforts or initiatives a supplier makes to meet or exceed customer expectations, enhance partnerships, or improve product offerings.

Full-Line Forcing

A sales strategy where a supplier requires a retailer to carry its entire product line to obtain any of the supplier's products.

Tying Arrangement

A business practice where a seller requires a buyer to purchase another one of the seller's products as a condition of purchasing the desired product.