value 10.00 points Exercise 7-28 Departmental Cost Allocation [LO 7-3, 7-5 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 Premiunm From Actuarial Actuarial Premium 20% 10% 20 10% 60 80% The direct operating costs of the departments (including both variable and fixed costs) are Actuarial Premium rating Advertising Sales $83,000 18,000 um rating63,000 43,000 Required 1. Determine the tot al cost allocated to the advertising and sales departments using the direct method Total Cost Advertising department Sales department 2. Determine the total cost allocated to advertising and sales using the step method Total Cost All Advertising department Sales department