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Please help with these three problems HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales).

Please help with these three problems

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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: To From Actuarial Premium Rating Advertising Sales Actuarial 80% 10% 10% Premium 20% - 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $80,000 Premium rating 15,000 Advertising 60,000 Sales 40,000 '7 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 ofallocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method ofallocation. 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 method or allocation. Advertising department $ 109,000 Sales department $ 98,000 Required 2 > \fRequired 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. (Do not round intermediate calculations. Round your nal answers to 4 decimal places.) Advertising department 93,405.0000 Sales department 113,595.0000

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