Better Health 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 Actuarial 0% 20% Actuarial Premium Rating Marketing Sales Rating 20% 0% TO Marketing 10% 40.0% Sales 70% 40.0% Actuarial Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: $ 50,000 $ 150,000 $ 71,000 $ 63,000 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%
Better Health 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 Actuarial 0% 20% Actuarial Premium Rating Marketing Sales Rating 20% 0% TO Marketing 10% 40.0% Sales 70% 40.0% Actuarial Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: $ 50,000 $ 150,000 $ 71,000 $ 63,000 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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abhaliya
Transcribed Image Text:Better Health 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
Actuarial
Premium Rating
Marketing
Sales
Actuarial
0%
20%
Multiple Choice
Rating
20%
0%
Actuarial
Rating
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
$166,180.
$193,828
$ 50,000
$ 150,000
TO
$ 71,000
$ 63,000
Marketing
10%
40.0%
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)
Sales
70%
40.0 %
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