Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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: From Actuarial Premium To Actuarial Premium Rating Advertising 80 100 20 Sales 100 60 56:37 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales $83,000 18,000 63,000 43,000 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. Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the direct method or allocation. 8 TUI UT Juvelusilly 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. 01:55.44 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the direct method or allocation. Total Cost Allocated Advertising department Sales department Required Required 2 > upurulents after using NUNC lile luidi costs of the advertising and sales departments after using Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3 Determine the total costs of the advertising and sales departments after using the st Total Cost Allocated Advertising department Sales department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conservation Easement Audit Techniques Guide

Authors: U.S. Internal Revenue Service

1st Edition

0359516998, 978-0359516995

More Books

Students also viewed these Accounting questions

Question

Construct raw frequency tables for race.

Answered: 1 week ago