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HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments ladvertising and sales). The distribution of each service department's
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments ladvertising and sales). The distribution of each service department's efforts (in percentages) to the other departments is shown in the ollowing table: The direct operating costs of the departments (including both variable and fixed costs) are: 1. Determine the total costs of the advertising and sales departments after using the direct method of 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. Determine the total costs of the advertising and sales departments after using the direct method or allocation. Determine the total costs of the advertising and sales departments after using the step method of allocation. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. (Do not ound intermediate calculations. Round your final answers to the nearest whole dollar amount.)
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