7-41: Departmental cost allocation insurance company: Comprehensive insurance company has two product lines ; health insurance and auto insurance. The two product lines are served by three operating departments which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments which are necessary for providing the two types of products:claims processing, administration, and sales. These three operating departments are supported by two departments: infromation technology and operations. The support provided by information technology and operations to the other departments is shown below.

Support departments

Information technology operations

information --- 20%

Operations 10% ___

Operating Department

Claims processing Administration sales

Infromation 20% 40% 20%

operations 10 50 30

Use 4 or more decimal places(e.g., 33.3333%) in your calculations. Allocate the $4,350,000 total departmental costs to the three operating departments using a.) direct method only.