Better Health Company has two service departments-actuarial and premium rating, and two operations departments-marketing and sales. The distribution e each service department's efforts to the other departments is shown below TO Actuarial 0% 25% Rating 40% 0% Sales FROM Actuarial 40% Rating 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 42,000 Premium Rating $ 30,000 $ 42,000 Marketing Sales $ 52,000 The total cost accumulated in the sales department using the direct method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, a Marketing 20% 37.5%
Better Health Company has two service departments-actuarial and premium rating, and two operations departments-marketing and sales. The distribution e each service department's efforts to the other departments is shown below TO Actuarial 0% 25% Rating 40% 0% Sales FROM Actuarial 40% Rating 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 42,000 Premium Rating $ 30,000 $ 42,000 Marketing Sales $ 52,000 The total cost accumulated in the sales department using the direct method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, a Marketing 20% 37.5%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
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
Rating
Actuarial
Premium Rating
Marketing
Sales
Actuarial
0%
25%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
$ 42,000
$ 30,000
$ 42,000
$ 52,000
Multiple Choice
Rating
40%
0%
$95,000
TO
$80,000
Marketing
20%
37.5%
The total cost accumulated in the sales department using the direct method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and
round all dollar amounts to the nearest whole dollar)
Sales
40%
37.5%
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