Please provide answer in text (Without image) Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served bythree operating departments, which are necessary for providing the two types of products: claims processing, administration, andsales. These three operating departments are supported by two departments: Information technology and operations. The supportprovided by information technology and operations to the other departments is shown below.Operating DepartmentsInformation technologyOperationsClaims processingAdministrationInformation technology iOperationsThe total costs incurred in the five departments are:SalesTotal costsSupport DepartmentsaDirect Methodb. Step Method (Info Tech First)Step Method (Operations First)InformationTechnology Operations20%10%cReciprocal Method$ 567,0001,550,000340,000550,000580,000$3,587,000Required: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 reciprocalmethod. (Do not round intermediate calculations. Round final answers to the nearest dollar.)ClaimsProcessing Administration20%40%1050Operating DepartmentsAdministrationClaims ProcessingSales$$Sales20%30S$Total0OOOO00

Lets understand the basics.Cost can be allocated using,(1) Direct method(2) Step down method(3)…

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. Operating Departments Information technology Operations Clates processing Administration Sales Support Departments Information technology Operations The total costs incurred in the five departments are: Total costs Information Technology Operations 20% 10% $ 567,000 1,550,000 340,000 550,000 580,000 $3,587,000 Claims Processing Administration 20% 10 40% 50 Sales 20% 30

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. Operating Departments Information technology Operations Clates processing Administration Sales Support Departments Information technology Operations The total costs incurred in the five departments are: Total costs Information Technology Operations 20% 10% $ 567,000 1,550,000 340,000 550,000 580,000 $3,587,000 Claims Processing Administration 20% 10 40% 50 Sales 20% 30

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 23P: Aurora Radiological Services is a health care clinic that provides radiological imaging services...

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