The total cost accumulated in the marketing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume the actuarial department goes first):

Question Completion:

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 Long Term Care Plus Company

The total cost accumulated in the marketing department using the step method is:

= $104,000

Explanation:

a) Data and Calculations:

                   Actuarial   Rating   Marketing   Sales

Actuarial          0%         40%         20%         40%

Rating            25%           0%         37.5%      37.5%

Direct costs of each department:

                        Actuarial   Rating     Marketing     Sales      Total

Direct costs    $60,000  $40,000    $60,000   $70,000  $230,000

Allocation of

Actuarial         (60,000)    24,000      12,000       24,000      0

Allocation of

Rating dept.     0                  0           32,000        32,000      0

Total costs     $0               $0        $104,000    $126,000 $230,000

Allocation of Actuarial Dept. costs:

Rating dept = 40% of $60,000 = $24,000

Marketing dept = 20% of $60,000 = $12,000

Sales dept = 40% of $60,000 = $24,000

This brings the Rating dept's total cost to $64,000 ($40,000 + $24,000) which is allocated to the Marketing and Sales departments in accordance with their sharing ratios.  Since the sharing ratios are 37.5% each, the new ratios become 50:50 or 50% each.

Allocation of Rating Department's cost:

Marketing dept. = 50% of $64,000 = $32,000

Sales dept. = 50% of $64,000 = $32,000

b) The step method of allocating service departments' costs allocates service costs to the operating departments and other service departments in a sequential process, starting with the service department that incurred the greatest costs.  

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported