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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 Design Support Assembly Finishing
Design 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.
Calculate the total cost accumulated in the finishing department using the direct method?
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