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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

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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 From Actuarial Actuarial Premium Premium Rating 80% Advertising 10% Sales 10% 25 % 15 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales $100,000 35,000 80,000 60,000 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. Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales Advertising department Sales department Total Cost Allocated Required 1 Required 2 Required 3 Determine the total costs of the advertising Advertising department Sales department Total Cost Allocated Required 1 Required 2 Required 3 Determine the total costs of the advertising an round intermediate calculations. Round your fin Advertising department Sales department Total Cost Allocated

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