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:

Price Range

The spread between the lowest and highest price at which a product or service is offered in the market.

Demand Schedule

A table that shows the quantity of a good or service demanded at different price levels.

Percentage Change

A mathematical calculation that describes the degree of change over time, expressed as a fraction of the starting value.