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 fabrication department using the step method is (assume the purchasing department goes first; calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) :

A) $104,500.
B) $109,950.
C) $124,050.
D) $130,750.
E) $136,500.