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HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two prod (advertising and sales). The distribution of each service department's efforts
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two prod (advertising and sales). The distribution of each service department's efforts (in percentages) to the other dep following table: From Actuarial Premium To Premium Actuarial Rating Advertising Sales 80% 15% 5% 25% 15 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales Required: $ 87,000 22,000 67,000 47,000 1. Determine the total costs of the advertising and sales departments after using the direct method of allocatio 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 allow 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 of allocation. Total Cost Allocated Advertising department Sales department Required 2 >
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