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Problem 7.41 (Algo) Departmental Cost Allocation; Service Company [LO 7-3, 7.5] Comprehensive insurance Company has two product lines: health insurance and auto insurance. The two

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Problem 7.41 (Algo) Departmental Cost Allocation; Service Company [LO 7-3, 7.5] Comprehensive insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing. administration, and sales. These thiree operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. The total costs incurred in the five departments are: Required: Determine the totol cous in each of the three operating departments, after departmental allocations, using (o) the direct method, (D) the step method first for informotion technology going first in the allocation and then for operations going first). and (c) the reciprocal. method. (Do not round intermediate calculations. Round final answers to the nearest dollar.)

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