HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service departments efforts (in percentages) to the other departments is shown in the following table:

TO

FROM	ACTUARIAL	PREMIUM RATING	ADVERTISING	SALES
ACTUARIAL	-	70%	15%	15%
PREMIUM	20%	-	20	60

The direct operating costs of the depts ( including both variable and fixed costs ) are:

Acturarial	$ 85,000
Premium Rating	$ 20,000
Advertising	$ 65,000
Sales	$ 45,000

REQUIRED: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.

***I have figured out the first Requirement: total cost allocated for advertising department is $112,500 and sales department is $102,500. Can someone please do the second and third requirement as well as show exactly how you get the answers. I would like to see all the working notes for all numbers. Thank you!***