Better Health Company has two service departments distribution of each service department's efforts to the c

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
28
Law
Better Health Company has two service departments - actuarial and premium rating, and two operations departments - marketing a
distribution of each service department's efforts to the other departments is shown below:
FROM
Actuarial
Rating
Actuarial
Premium Rating
Marketing
Sales
Actuarial
08
258
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Rating
40%
0%
Multiple Choice
$113,167
TO
$ 65,000
$ 45,000
$ 65,000
$ 75,000
Marketing
20%
37.5%
Sales
40%
37.5%
The total cost accumulated in the marketing department using the direct method is (calculate all ratios and percentages to 2 decimal pla
33.33%, and round all dollar amounts to the nearest whole dollar):
Transcribed Image Text:28 Law Better Health Company has two service departments - actuarial and premium rating, and two operations departments - marketing a distribution of each service department's efforts to the other departments is shown below: FROM Actuarial Rating Actuarial Premium Rating Marketing Sales Actuarial 08 258 The direct operating costs of the departments (including both variable and fixed costs) were as follows: Rating 40% 0% Multiple Choice $113,167 TO $ 65,000 $ 45,000 $ 65,000 $ 75,000 Marketing 20% 37.5% Sales 40% 37.5% The total cost accumulated in the marketing department using the direct method is (calculate all ratios and percentages to 2 decimal pla 33.33%, and round all dollar amounts to the nearest whole dollar):
Multiple Choice
O
O
$113,167.
$109,167.
$140,833.
$136,833
$96,167
O
Transcribed Image Text:Multiple Choice O O $113,167. $109,167. $140,833. $136,833 $96,167 O
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