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 TO 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):
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 TO 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):
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 18E
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Question
![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):](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7e3b0b9-286a-4987-80c5-b6ecee68c611%2Fa126f15e-5a6e-4b93-b74f-d614b2d9e0dc%2F0v5n5lu_processed.png&w=3840&q=75)
Transcribed Image Text: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):
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