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Question 1 (9 points) Listen The Long-Term Care Plus company has two service departments- actuarial and premium rating, and two operations departments, marketing and sales.
Question 1 (9 points) Listen 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. FROM TO Actuarial (S1) Prem Rating (S2) Actuarial 0% 25% Prem Rating 40% 0% Marketing (P1) 20% 38% Sales (P2) 40% 37% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial Premium Rating Marketing Sales $ $ $ 60,000 40,000 60,000 70,000 A. What are the total costs for the production departments using the direct method? B. What are the total costs for the production departments using the step method? Allocate S1 fully. C. What are the total costs for the production departments using the reciprocal method
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