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In: AccountingHomeLife Life Insurance Company has two service departments(actuarial and premium rating) and two production departments...HomeLife Life Insurance Company has two service departments(actuarial and premium rating) and two production departments(advertising and sales). The distribution of each servicedepartment’s efforts (in percentages) to the other departments isshown in the following table:ToFromActuarialPremium RatingAdvertisingSalesActuarial—70%15%15%Premium20%—2060The direct operating costs of the departments (including bothvariable and fixed costs) are:Actuarial$93,000Premium rating28,000Advertising73,000Sales53,000Required:1. Determine the total costs of the advertising and salesdepartments after using the direct method or allocation.2. Determine the total costs of the advertising and salesdepartments after using the step method of allocation.3. Determine the total costs of the advertising and salesdepartments after using the reciprocal method of allocation.