Question

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:

FROM	TO
	Actuarial			Rating			Marketing			Sales
Actuarial	0	%		40	%		20	%		40	%
Rating	25	%		0	%		37.5	%		37.5	%
​

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

The total cost accumulated in the marketing 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):

Diamond Cleats Co. has an order for cleats that has the following production requirements:

Number of inspections	465​
Number of machine hours	280​
Number of batches	9​
Direct labor hours	1120​

Using activity-based costing, applied machine overhead for the baseball cleat order is:

Answer 1

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