The Long Term Care Plus Company has two service departments — actuarial and prem

Question

The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two production departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Actuarial Rating Marketing Sales    Actuarial 0.0% 40.0% 20.0% 40.0% Rating 23.0% 0.0% 34.3% 42.7% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $55,000 Rating $36,000 Marketing $54,000 Sales $65,000 The total cost accumulated in the sales department using the reciprocal method is:   The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two production departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Actuarial Rating Marketing Sales    Actuarial 0.0% 40.0% 20.0% 40.0% Rating 23.0% 0.0% 34.3% 42.7% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $55,000 Rating $36,000 Marketing $54,000 Sales $65,000 The total cost accumulated in the sales department using the reciprocal method is:  

Explanation / Answer

Computation of the total cost accumulated in the sales department using the reciprocal method.We have,

Hence, the total cost accumulated in the sales department is $ 120,152

Particulars Actuarial Rating Marketing Sales Direct Operating Cost $ 55,000 $ 36,000 $ 54,000 $ 65,000 Actuarial(40:20:40) (55,000) 22,000 11,000 22,000 Rating(23:34.3:42.7) 13,340 (58,000) 19,894 24,766 Actuarial(40:20:40) (13,340) 5,336 2,668 5,336 Rating(23:34.3:42.7) 1,227 (5,336) 1,830 2,278 Actuarial(40:20:40) (1,227) 491 245 491 Rating(23:34.3:42.7) 113 (491) 168 210 Actuarial(40:20:40) (113) 45 23 45 Rating(23:34.3:42.7) 10 (45) 15 19 Actuarial(40:20:40) (10) 4 2 4 Rating(23:34.3:42.7) 1 (4) 1 2 Actuarial(40:20:40) (1) 0 0 1 Total cost accumulated 0 0 $ 89,846 $ 120,152

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.