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HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two prod (advertising and sales). The distribution of each service department's efforts
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two prod (advertising and sales). The distribution of each service department's efforts in percentages) to the other der following table Actuarial From Actuarial Premium TO Premium Rating Advertising 80% 15% 15 Sales 5% 60 25% The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales $ 87.000 22, eee 67.000 47.000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocatic 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 allo 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 of allocation. Total Cost Allocated Advertising department Sales department Required 2 >
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