Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. homelife life insurance company has two service de

HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production...

90.2K

Verified Solution

Question

Accounting

HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service departments efforts (in percentages) to the other departments is shown in the following table:

To
From Actuarial Premium 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:

Actuarial $ 82,000
Premium rating 17,000
Advertising 62,000
Sales 42,000

1.

Determine the total cost allocated to the advertising and sales departments using the direct method.

2.

Determine the total cost allocated to advertising and sales using the step method.

3.

Determine the total cost allocated to advertising and sales using the reciprocal method. (Round your intermediate calculations to the nearest whole dollar and final answers to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

list the structure and fluids that light passes through from the cornea to the retina?

Medical Sciences
Q

Module/Week 1 ASSIGNMENT (BASIC ELEMENTS) 1. Install Visual Studio Express 2019 for Windows Desktop (you will need...

Programming
Q

92 Charge is distributed inside a long cylindrical volume of radius R such that charge...

Physics
Q

vectors each of a magnitude V make an angle of 60 with each other The...

Physics
Q

Where will the median be located for this distribution Mode Mean mode median mean median...

Basic Math
Q

Lot Corporation compr el 80% de las acciones en circulacin de Mat Corporation el 1...

Accounting
Q

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of...

Accounting
Q

Which of the following is a reason for decentralizing? Multiple Choice a Training and motivating...

Accounting
Q

A business sold for $252,000. The down payment was 8%. The buyer financed the balance...

Accounting
Q

Minelli Enterprises, tavan vantilatrlerinin imalatnda byk miktarlarda bakr kullanr. Firma, artan bakr fiyatlarnn kazanlar zerindeki...

Finance
Q

Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer...

Accounting
Q

For its most recent year a company had Sales (all on credit) of $830,000 and...

Finance