The direct operating cost of the departments

Reference no: EM13772007

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)

Reference no: EM13772007

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