The Insurance Plus Company Has Two Service Departments - Actuarial

Multiple Choice

The Insurance 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:
The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $50,000.Premium Rating $40,000.Marketing $60,000.Sales $70,000.The total cost accumulated in the sales department using the direct 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) :

A) $37,143.
B) $70,000.
C) $100,000.
D) $107,143.
E) $137,143.