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Exercise 7.28 (Algo) Departmental Cost Allocation [LO 7.3, 7.5] Hometife Lfe insurance Company has two service departmens (actuarial and premium rating) and two production departments

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Exercise 7.28 (Algo) Departmental Cost Allocation [LO 7.3, 7.5] Hometife Lfe insurance Company has two service departmens (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: The dicect operating costs of the departments (including both variable and fixed costs) ate: Required: 1. Determine the total costs of the advertising and sales departments after using the diroct method of allocation. 2. Deterenine the total costs of the advertising and sales departments after using the step method of aliocation. 3. Determine the total costs of the advertising and sales departments afler using the reciprocal method of aliocation. Complete this quevtion by entering your answers in the tabs below: Determine the tocat cots of the odvertising and saies departenents after using the direct method of alocation. Exercise 7.28 (Algo) Departmental Cost Allocation [LO 7.3, 7.5] Hometife Lfe insurance Company has two service departmens (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: The dicect operating costs of the departments (including both variable and fixed costs) ate: Required: 1. Determine the total costs of the advertising and sales departments after using the diroct method of allocation. 2. Deterenine the total costs of the advertising and sales departments after using the step method of aliocation. 3. Determine the total costs of the advertising and sales departments afler using the reciprocal method of aliocation. Complete this quevtion by entering your answers in the tabs below: Determine the tocat cots of the odvertising and saies departenents after using the direct method of alocation

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