The Merchant Manufacturing Company Has Two Service Departments — Purchasing

Multiple Choice

The Merchant 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:The total cost accumulated in the assembly department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) :

A) $102,750.
B) $114,600.
C) $85,800.
D) $131,250.
E) $135,000.