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: From Actuarial Premium To Actuarial Premium Rating Advertising 80 % 10% 20 % 20 Actuarial Premium rating Advertising Sales The direct operating costs of the departments (including both variable and fixed costs) are: $92,000 27,000 72,000 52,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or allocation. Sales 10% 60 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 Advertising department Sales department Determine the total costs of the advertising and sales departments after using the direct method or allocation. Total Cost Allocated 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 step method of allocation. Total Cost Allocated Advertising department Sales department 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 reciprocal method of allocation. round intermediate calculations. Round your final answers to 4 decimal places.) Advertising department Sales department Total Cost Allocated 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 To Actuarial Premium Rating Advertising 80 % 10% 20 % 20 Actuarial Premium rating Advertising Sales The direct operating costs of the departments (including both variable and fixed costs) are: $92,000 27,000 72,000 52,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or allocation. Sales 10% 60 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 Advertising department Sales department Determine the total costs of the advertising and sales departments after using the direct method or allocation. Total Cost Allocated 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 step method of allocation. Total Cost Allocated Advertising department Sales department 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 reciprocal method of allocation. round intermediate calculations. Round your final answers to 4 decimal places.) Advertising department Sales department Total Cost Allocated
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Required 1 Using the direct method of allocation Advertising department Direct operatin... 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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