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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 Premium Rating Advertising 7 20 Actuarsol Sales 15% From Actuarial Premium 20 The direct operating costs of the departments including both variable and fixed costs) ale Actuarial Prelun rating Advertising Sales 550.000 23,000 68,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of 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 Required 2 Mequired a Determine the total costs of the advertising and sales departments after using the direct method of allocation: Total Cost Allocato Advertung departe Sales department Required 22

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