Question
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
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 0% 10% TO Rating 20% Marketing 20% 0% 40.0% Sales 60% 50.0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $70,000 $ 40,000 $64,00 $ 89,000 The total cost accumulated in the marketing department using the reciprocal method is: $96,576. $99,102. $101,143. $99,278. $105,213,
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