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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

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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: To Premium Rating Advertising Actuarial Sales From Actuarial 80 % 10% 10% Premium 20 % 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising $92,000 27,000 72,000 52,000 Sales 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. Required 2 Required 3 Required 1 Determine the total costs of the advertising and sales departments after using the direct method or allocation Total Cost Allocated Advertising department Sales department Determine the total costs of the advertising and sales departments after using the step method of allocation. Total Cost Allocated Advertising department Sales department Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. (Do not round intermediate calculations. Round your final answers to 4 decimal places.) Total Cost Allocated Advertising department Sales department

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