Question in cost management -

The Long Term Care Plus company has two service departments - actuarial and premium rating, and two operations department - marketing and sales. The distribution of each service department's efforts to the other departments is shown as follows: (Information given on attached excel spreadsheet).

The direct operating costs of the departments (including both variable and fixed costs) were as follows: (Information given on attached excel spreadsheet).

The total cost accumulated in the marketing department using the direct method is: ________________

**The answer is included on the attached spreadsheet. My specific question is where did the 75 and the percentages (highlighted in red) come from in rows 20 and 25 of the attached worksheet.

Service Actuarial Actuarial Rating Production Rating Marketing Sales 0% 50% 30% 30% 0% 40% Total Cost Accumulated in Mkt. Dept. using Direct Method Actuarial DEPARTMENTAL ALLOCATION BASES Actuarial Percent 0% Rating 30 Percent 30% Direct Operating Costs (Including Variable & Fixed) Actuarial $ 50,000 Premium Rating $ 40,000 Marketing $ 60,000 Sales $ 70,000 20% 30% Rating Marketing 50 50% Sales Total 0% 30 30% 40 40% 20 20% 30 30% 1ST PHASE: DIRECT COSTS AND PERFORM INITIAL ALLOCATION OF INDIRECT COSTS Totals for All Departments $50,000 $40,000 $60,000 $70,000 $220,000 30% 60% $30,000 20% 40% $20,000 40% 57.14% $22,857 30% 70% 42.86% 100% $17,143 $40,000 $112,857 $107,143 $220,000 100% 100% 2ND PHASE: Reallocate Service Dept Costs to Production Dept. Actuarial Service % to producing depts Allocation % per the direct method: 12.5/75=16.67%; 62.5/75=83.33% Allocation Amount 50% 100% $50,000 Rating Service % to producing depts Allocation % per the direct method: 25/75=33.33%; 50/75=66.67% Allocation amount Totals for Production Departments