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: From Actuarial Premium Actuarial Premium Rating Advertising 80 108 20 20 Sales 101 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales 598,000 33,000 78,000 58,000 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. Actuarial Premium rating Advertising Sales $98,000 33,000 78,000 58,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direc 2. Determine the total costs of the advertising and sales departments after using the step 3. Determine the total costs of the advertising and sales departments after using the recip 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 met Total Cost Allocated Advertising department Sales department (Required 1 Required 2 > Actuarial Premium rating Advertising Sales $98,000 33,000 78,000 58,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or alle 2. Determine the total costs of the advertising and sales departments after using the step method of alloc 3. Determine the total costs of the advertising and sales departments after using the reciprocal method o 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 step method of allocation. Total Cost Allocated Advertising department Sales department 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 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 reciprocal method of allocation. (Don round intermediate calculations. Round your final answers to 4 decimal places.) Total Cost Allocated Advertising department Sales department
