The Long Term Care Plus Company has two service departments actuarial and premium rating, and two operations
Question:
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:
Actuarial Rating Marketing Sales
Actuarial 0% 20% 10% 70%
Rating 10% 0% 40.0% 50.0%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Actuarial $50,000
Premium Rating $200,000
Marketing $44,000
Sales $88,000
The total cost accumulated in the sales 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):
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins