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 To Actuarial Premium Rating Advertising 10% 20 20% Actuarial Premium rating Advertising Sales The direct operating costs of the departments (including both variable and fixed costs) are: $80,000 15,000 60,000 40,000 80% 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 Sales 10% 60 Complete this question by entering your answers in the tabs below. Advertising department Sales department Required 3 Determine the total costs of the advertising and sales departments after using the direct method or allocation. Total Cost Allocated

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 ollowing table: The direct operating costs of the departments (including both variable and fixed costs) are: 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. Determine the total costs of the advertising and sales departments after using the direct method or allocation