The Long Term Care Plus Company has two service departments - actuarial and premium rating, and two production departments - marketing and sales. The distribution of each service department's efforts to the other departments is shown below (see attachment):

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

Actuarial $60,000

Premium Rating $40,000

Marketing $60,000

Sales $70,000

Required: Determine the total cost allocated to the Marketing and Sales Departments using the direct method. Please show all work.

The Long Term Care Plus Company has two service departments actuarial and premium rating, and two production departments marketing and sales. The distribution of each service department's efforts to the other departments is shown below: The direct operating costs of the departments (including both variable and fixed costs) were as follows: Required: Determine the total cost allocated to the Marketing and Sales Department using the direct method