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Calculate total cost accumulated in finishing department

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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.

Reference no: EM132229566

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