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Check my world Homelite Lite insurance company has two service departments (actuarial and premium rating, and two production departments (advertising and sales). The distribution of
Check my world Homelite Lite 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: Actuarial From Actuarial Premium Premium Rating sex Advertising 18% Sales 10% 60 20% The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales S80, eee 15, eee 68,eee 40, eee Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. complete this question by entering your answers in the tabs below. Next >
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