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Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below.

$$Support DepartmentsOperating DepartmentsInformation TechnologyOperationsClaims ProcessingAdministrationSalesInformation technology$20\%20\%40\%20\%$Operations$10\%105030$

The total costs incurred in the five departments are:

Information technology$ $579,000$Operations$1,580,000$Claims processing$270,000$Administration$551,000$Sales$600,000$Total costs$ $3,580,000$

Required:

Determine the total costs in each of the three operating departments, after departmental allocations, using

$($a$)$ the direct method,

$($b$)$ the step method $($first for information technology going first in the allocation and then for operations going first$),$ and

$($c$)$ the reciprocal method.

Note: Do not round intermediate calculations. Round final answers to the nearest dollar.

The total costs incurred in the five departments are:

Required:

Determine the total costs in each of the three operating departments, after departmental allocations, using

$($a$)$ the direct method,

$($b$)$ the step method $($first for information technology going first in the allocation and then for operations going first$),$ and

$($c$)$ the reciprocal method.

Note: Do not round intermediate calculations. Round final answers to the nearest dollar.

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