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Question - Barley 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:
TO/FROM
Design
Support
Assembly
Finishing
0%
10%
30%
60%
20%
45%
35%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Design $310,000
Engineering Support $330,000
Assembly $1,230,000
Finishing $1,860,000
Required - Calculate the total cost accumulated in the finishing department using the step method.
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