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7-28 Departmental Cost Allocation HomeLife Life Insurance Company has two service departments (actuarial and [LO 7-3, premium rating) and two production departments (advertising and sales).

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7-28 Departmental Cost Allocation HomeLife Life Insurance Company has two service departments (actuarial and [LO 7-3, premium rating) and two production departments (advertising and sales). The distribution of each service department's efforts (in percentages) to the other departments is shown in the following table

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