HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service departments efforts (in percentages) to the other departments is shown in the following table:

	To
From	Actuarial			Premium Rating			Advertising			Sales
Actuarial					80	%		10	%		10	%
Premium		25	%					15			60

The direct operating costs of the departments (including both variable and fixed costs) are:

Actuarial	$	91,000
Premium rating		26,000
Advertising		71,000
Sales		51,000

Required:

1.

Determine the total cost allocated to the advertising and sales departments using the direct method.

	Total Cost Allocated
Advertising Department	?
Sales Department	?

2.

Determine the total cost allocated to advertising and sales using the step method.

	Total Cost Allocated
Advertising Department	?
Sales Department	?

3.

Determine the total cost allocated to advertising and sales using the reciprocal method. (Round your intermediate calculations to the nearest whole dollar and final answers to 2 decimal places.)

	Total Cost Allocated
Advertising Department	?
Sales Department	?