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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

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:
FROM TO
Actuarial Rating Marketing Sales
Actuarial 0.0% 40.0% 20.0% 40.0%
Rating 27.0% 0.0% 41.7% 31.3%
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
Actuarial $66,000
Rating $44,000
Marketing $66,000
Sales $76,000
The total cost accumulated in the marketing department using the step method is:
$132,585
$113,134
$126,000
$119,415
$138,866

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