The Long Term Care Plus Company Has Two Service Departments

question 23

Multiple Choice

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:The total cost accumulated in the sales department using the direct method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar) :

• A) $100,000.
• B) $109,000.
• C) $126,000.
• D) $130,000.
• E) $135,000.

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