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 are supported by two departments: Information technology and operations. The support provided by information technology and operations to the other departments is shown below. Support Departments Information Technology Operations 20% 10% Operating Departments Cla Processing Administration 20% 40 10 50 Information technology Operations Sales 203 30 The total costs incurred in the five departments are: Information technology Operations Cais processing Administration $ 635,000 1.790,000 290,000 644,000 050 30.000 Total costs Required: Determine the total costs in each of the three operating departments, after departmental allocations using (a) the direct method. (b) the step method (fret for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Round percentage calculations to 4 decimal places (0,0. 93.3333%). Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.) Operating Departments Claims Processing Administrations Total Direct Mathod Sto Method Tech F) Stap Method Operations First Coroo Mood 5 5 5 0 0 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 are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Support Departments Information Technology Operations 20% 18% Operating Departments Claims Processing Administration 20% 4ex 10 50 Information technology Operations Sales 284 30 The total costs incurred in the five departments are: Information technology Operations claims processing Administration Sales Total costs $ 635,000 1,790,000 290,000 644,000 650,000 $4,009, Required: Determine the total costs in each of the three operating departments, after departmental allocations using (a) the direct method, (b) the step method (first for Information technology going first in the allocation and then for operations going first), and (c) the reciprocal method (Round percentage calculations to 4 decimal places (e.g. 33.3333%). Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.) Operating Departments Claims Processing Administration Sales Total MS Direct Method b. Step Method (Info Teon First Step Method (Operations First) Reciprocal Method 0 0 $ 0
