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Homework answers / question archive / The Long Term Care Plus Company has two service departments – actuarial and premium rating, and two operations departments – marketing and sales

The Long Term Care Plus Company has two service departments – actuarial and premium rating, and two operations departments – marketing and sales

Accounting

The Long Term Care Plus Company has two service departments – actuarial and premium rating, and two operations departments – marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Rating Marketing Sales 20% 20% 60% 0% 40.0% 50.0% Actuarial 0% 10% Actuarial Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $70,000 $30,000 $59,000 $83,000 The total cost accumulated in the marketing department using the reciprocal 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):
Multiple Choice O $139,685. $112,037 $120,347. O $132,106. $91,857

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