Solution for QID #1838: The Long Term Care Plus Company has two service departments | StudyHelpMe

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: .0/msohtmlclip1/01/clip_image002.png”> The direct operating costs of the departments (including both variable and fixed costs) were as follows: .0/msohtmlclip1/01/clip_image004.png”> Required: Determine the total cost allocated to the Marketing and Sales Department using the direct method.