Step method

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:

FROMTO

ActuarialRatingMarketingSales

Actuarial0%40%20%40%

Rating25%0%45%35%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

Actuarial$60,000

Premium Rating$40,000

Marketing$60,000

Sales$70,000

Determine the total cost accumulated in the marketing and sales departments 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 the actuarial department goes first):