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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 department's efforts
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 0% 25% Rating 40% 0% Marketing 20% 37.5% Sales 40% 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $ 90,000 $ 60,000 $ 90,000 $ 100,000 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): $188,000. $193,000. $184,000. $156,000. $152,000
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