Please help me with this question (3) The Long Term Care Plus Company has two se

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Please help me with this question (3)

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: The direct operating costs of the departments (including both variable and fixed costs) were as follows: 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):

Explanation / Answer

Answer:$126000

60000 40000 60000 70000 Actuarial Rating Marketing Sales Actuarial 0% 40% 20% 40% Rating 25% 0% 37.50% 37.50% Actuarial 24000 12000 24000 Rating 16000 0 24000 24000 Actuarial 0 6400 3200 6400 Rating 1600 0 2400 2400 Actuarial 0 640 320 640 Rating 160 0 240 240 Actuarial 0 64 32 64 Rating 16 0 24 24 Actuarial 0 6.4 3.2 6.4 Rating 1.6 0 2.4 2.4 Actuarial 0 0.64 0.32 0.64 Rating 0.16 0 0.24 0.24

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