HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments...
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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: То Premium From Actuarial Rating Advertising Sales Actuarial 80% 10% 10% Premium 25% 15 60 The direct operating costs of the departments (including both variable and fixed costs) are: $ 99,000 Actuarial Premium rating 34,000 79,000 59,000 Advertising Sales Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of 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 of allocation. Total Cost Allocated Advertising department Sales department Required 1 Required 2 > 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: То Premium From Actuarial Rating Advertising Sales Actuarial 80% 10% 10% Premium 25% 15 60 The direct operating costs of the departments (including both variable and fixed costs) are: $ 99,000 Actuarial Premium rating 34,000 79,000 59,000 Advertising Sales Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of 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 of allocation. Total Cost Allocated Advertising department Sales department Required 1 Required 2 >
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Answer rating: 100% (QA)
Simultaneous equation method A 9900025P P 3400080A Where A Acturial P Pre... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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