Question: find total allocayion cost using each method: direct method, step and reciprical Soved power HomeLife Life Insurance Company has two service departments (actuarial and premium

find total allocayion cost using each method: direct method, step and reciprical find total allocayion cost using each method: direct method, step and reciprical

Soved power 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: From Actuarial Premium Actuarial Premium Rating Advertising 25 10% Sales 100 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial Premium rating Advertising Sales $100,000 35,000 80,000 60,000 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 of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. 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 Total Cost Allocated Advertising department Sales department Prex 1 of 4 !!! Next >

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