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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 From Actuarial Rating Advertising Sales Actuarial 10 101 100 Premium 200 20 60 The direct operating costs of the departments including both variable and fixed costs) ore Actuarial $ 80,000 Premium rating 15,000 Advertising 60,000 Sales 40,000 Answer is complete but not entirely correct. 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 $ 83,800 Sales department 111,200

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