Better Health Company has two service departments - actuarial and premium rating, and two operations departments - marketing and sales. distribution of each service department's efforts to the other departments is shown below: FROM Actuarial Actuarial 0% 25% Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales Multiple Choice Rating 40% 0% $97200. ΤΟ $ 58,000 $ 40,000 $ 58,000 $ 68,000 Marketing 20% 37.5% Sales 40% 37.5% The total cost accumulated in the sales department using the step method is (calculate all ratios and percentages to 4 decimal places, for exam 33.3333%, and round dollar mounts the nearest whole dollar; assume that the actuarial department goes first):

Better Health Company has two service departments - actuarial and premium rating, and two operations departments - marketing and sales. distribution of each service department's efforts to the other departments is shown below: FROM Actuarial Actuarial 0% 25% Rating The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales Multiple Choice Rating 40% 0% $97200. ΤΟ $ 58,000 $ 40,000 $ 58,000 $ 68,000 Marketing 20% 37.5% Sales 40% 37.5% The total cost accumulated in the sales department using the step method is (calculate all ratios and percentages to 4 decimal places, for exam 33.3333%, and round dollar mounts the nearest whole dollar; assume that the actuarial department goes first):

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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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 TO Actuarial Rating Marketing Sales Actuarial 0% 40% 20% 40% Rating 25% 0% 37.5% 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 75,000 Premium Rating $ 50,000 Marketing $ 75,000 Sales $ 85,000 The total cost accumulated in the marketing department using the step 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; assume the actuarial department goes first): Multiple Choice a)$155,000. b)$130,000. c)$159,000. d)$164,000. e)$126,000.
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department's efforts (in percentages) to the other departments is shown in the following table: To From Actuarial Premium Rating Advertising Sales Actuarial - 70% 15% 15% Premium 20% 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $81,000 Premium rating 16, 000 Advertising 61, 000 Sales 41, 000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
The Long Term Care Plus Company has two service departments – actuarial and premium rating, and two operations departments – marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM то Actuarial Rating Marketing Sales 0$ Actuarial 40% 20% 40% Rating 25% 0융 37.5% 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $60,000 Premium Rating $40,000 Marketing $60,000 Sales $70,000 The total cost accumulated in the marketing department using the step 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; assume the actuarial department goes first):
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department's efforts (in percentages) to the other departments is shown in the following table: Actuarial Premium rating Advertising Sales From Actuarial Premium The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium Rating 80% 25% $ 87,000 22,000 67,000 47,000 Advertising department Sales department To Advertising Sales 15% 5% 15 Required 1 Required 2 Required 3 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. Complete this question by entering your…
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department’s efforts (in percentages) to the other departments is shown in the following table: To From Actuarial Premium Rating Advertising Sales Actuarial — 80% 15% 5% Premium 25% — 15 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 84,000 Premium rating 19,000 Advertising 64,000 Sales 44,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
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 Actuarial Rating Marketing Sales Actuarial 0 % 10 % 20 % 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 $ 80,000 Premium Rating $ 70,000 Marketing $ 40,000 Sales $ 86,000 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): Multiple Choice $89,091 $109,271. $186,909. $129,340. $136,919.
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 Actuarial Rating Marketing Sales Actuarial 0 % 40 % 20 % 40 % Rating 25 % 0 % 37.5 % 37.5 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 60,000 Premium Rating $ 40,000 Marketing $ 60,000 Sales $ 70,000 The total cost accumulated in the sales department using the step 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; assume that the actuarial department goes first):
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 Actuarial Rating Marketing Sales Actuarial 0 % 40 % 20 % 40 % Rating 25 % 0 % 37.5 % 37.5 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 86,000 Premium Rating $ 60,000 Marketing $ 86,000 Sales $ 96,000 The total cost accumulated in the sales department using the step 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; assume that the actuarial department goes first): Multiple Choice $146,400. $150,400. $177,600. $181,600. $186,600.
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 Actuarial Rating Actuarial Rating 0% 10% 10% 0% Actuarial Premium Rating Marketing Sales ΤΟ Marketing Sales 10% 80% 40.0% 50.0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: $ 90,000 $160,000 $ 58,000 $ 61,000 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):
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department’s efforts (in percentages) to the other departments is shown in the following table: To From Actuarial Premium Rating Advertising Sales Actuarial - 80% 10% 10% Premium 25% - 15% 60% The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 91,000 Premium rating 26,000 Advertising 71,000 Sales 51,000 Required: 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department’s efforts (in percentages) to the other departments is shown in the following table: To From Actuarial Premium Rating Advertising Sales Actuarial — 80% 10 % 10 % Premium 20% — 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 80,000 Premium rating 15,000 Advertising 60,000 Sales 40,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. What is the…
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 Actuarial Rating Marketing Sales Actuarial 0 % 10 % 20 % 70 % Rating 20 % 0 % 40.0 % 40.0 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 70,000 Premium Rating $ 130,000 Marketing $ 56,000 Sales $ 65,000 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 $131,510. $151,690. $130,714. $171,759. $179,338.