The Insurance Plus Company has two service departments - actuarial and premium rating,and two production 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: Actuarial $50,000.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):
A)$37,143.
B)$52,143.
C)$60,000.
D)$97,143.
E)$112,143.

Question

The Insurance Plus Company has two service departments - actuarial and premium rating,and two production 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: Actuarial $50,000.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):
A)$37,143. 
B)$52,143. 
C)$60,000. 
D)$97,143. 
E)$112,143.

Quizplus · Accepted Answer

The Answer of The Insurance Plus Company has two service departments - actuarial and premium rating,and two production 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: Actuarial $50,000.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):
A)$37,143. 
B)$52,143. 
C)$60,000. 
D)$97,143. 
E)$112,143.

The Insurance Plus Company Has Two Service Departments - Actuarial