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The Sakick 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:
From To
Purchasing Maintenance Fibrication Assembly
Purchasing 0% 70% 15% 15%
Maintenance 25% 0% 25% 50%
The direct operating cost 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 sales department using the reciprocal method is?
(please show working)
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