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Better Health Company has two service departments - actuarial and premium rating, and two operations departments - marketing and sales. The distribution of each service
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: TO FROM Actuarial Rating Actuarial % 20% Rating 10% Marketing 20% 40.0% Sales 70% 40.0% e The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $ 70,000 $ 130,000 $ 56,000 $ 65,000 The total cost accumulated in the marketing 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): Multiple Choice O $151,690 O $171,759 O $179,338 O $131,510. $157,066
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