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:
FROM TO
Purchasing Maintenance Fabrication Assembly
Purchasing 0 % 55 % 30 % 15 %
Maintenance 35 % 0 % 50 % 15 %
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Purchasing $ 126,000
Maintenance 48,000
Fabrication 102,000
Assembly 78,000
The total cost accumulated in the fabrication 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):
