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 Premium From Actuarial Rating Advertising Sales Actuarial Premium 10% 20 80% 10% 60 20% The direct operating costs of the departments (including both variable and fixed costs) are Actuarial Premium rating Advertising Sales $80,000 15,000 60,000 40,000 Required: 1. Determine the total cost allocated to the advertising and sales departments using the direct method Total Cost Allocated Advertising department Sales department 2. Determine the total cost allocated to advertising and sales using the step method Total Cost Allocated Advertising department Sales department