63. 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 sales 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 that the actuarial department goes first):
64. 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 reciprocal 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):
65. 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 sales department using the reciprocal 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):
66. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-1 using the physical measure 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):
67. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-2 using the physical measure 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):
68. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-3 using the physical measure 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):
69. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-1 using the sales value at split-off 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):
70. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-2 using the sales value at split-off 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):
71. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-3 using the sales value at split-off 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):
72. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-1 using the net realizable value 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):
73. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-2 using the net realizable value 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):
74. Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint
process. Each product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. Key information about Marin’s production, sales,
and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt’l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
The amount of joint costs allocated to product DBB-3 using the net realizable value 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):
