Chapter 7 Homework tpx HomeLife Life Insurance Company has two service departments (actuarial and 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: lo Premium g Adverti 10% 10% 60 80% Premium 20% The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating27,000 Advertising Sales $92,000 72,000 52,000 Required: 1. Determine the total cost allocated to the advertising and sales departments using the direct method Total Cost Allocated Advertising department Sales department 124,750 118,250 2. Determine the total cost allocated to advertising and sales using the step method Total Cost Allocated Advertising department Sales department Type here to search