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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: Actuarial Premium rating Advertising Sales Actuarial 20% To Premium Rating 80% From Actuarial Premium The direct operating costs of the departments (including both variable and fixed costs) are: $95.000 30.000 75.000 55.000 Advertising department Sales department Advertising 10% 20 Sales 10% 60 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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 Determine the total costs of the advertising and sales departments after using the step method of allocation. 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: Actuarial Premium rating Advertising Sales Actuarial 20% To Premium Rating 80% From Actuarial Premium The direct operating costs of the departments (including both variable and fixed costs) are: $95.000 30.000 75.000 55.000 Advertising department Sales department Advertising 10% 20 Sales 10% 60 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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 Determine the total costs of the advertising and sales departments after using the step method of allocation. Total Cost Allocated

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: Actuarial Premium rating Advertising Sales Actuarial 20% From Actuarial Premium The direct operating costs of the departments (including both variable and fixed costs) are: Advertising department Sales department Required 1 Required 2 Required 3 $95.000 30,000 75,000 55.000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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. Premium Rating 80% Complete this question by entering your answers in the tabs below. Show Transcribed Text Actuarial Premium rating Advertising Sales To Determine the total costs of the advertising and sales departments after using the step method of allocation. Total Cost Allocated Advertising 10% 20 Actuarial 20% Advertising department Sales department 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: Sales 10% 60 < Required 1 Premium From Rating Advertising Sales Actuarial 80% 10% 20 10% 60 Premium The direct operating costs of the departments (including both variable and fixed costs) are: $ 95,000 30,000 75.000 55.000 To Total Cost Allocated Required 3 > Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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 Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) < Required 2 Required 3 >
Transcribed Image Text: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: Actuarial Premium rating Advertising Sales Actuarial 20% From Actuarial Premium The direct operating costs of the departments (including both variable and fixed costs) are: Advertising department Sales department Required 1 Required 2 Required 3 $95.000 30,000 75,000 55.000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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. Premium Rating 80% Complete this question by entering your answers in the tabs below. Show Transcribed Text Actuarial Premium rating Advertising Sales To Determine the total costs of the advertising and sales departments after using the step method of allocation. Total Cost Allocated Advertising 10% 20 Actuarial 20% Advertising department Sales department 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: Sales 10% 60 < Required 1 Premium From Rating Advertising Sales Actuarial 80% 10% 20 10% 60 Premium The direct operating costs of the departments (including both variable and fixed costs) are: $ 95,000 30,000 75.000 55.000 To Total Cost Allocated Required 3 > Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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 Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) < Required 2 Required 3 >
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: Actuarial From Actuarial Advertising 10% 20 Premium The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 95,000 Premium rating Advertising Sales 30,000 75,000 55,000 20% To Premium Rating 80% Advertising department Sales department Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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. Required 1 Required 2 Required 3 Sales 10% 60 Complete this question by entering your answers in the tabs below. Determine the total costs of the advertising and sales departments after using the direct method of allocation. Total Cost Allocated < Required 1 Required 2 >
Transcribed Image Text: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: Actuarial From Actuarial Advertising 10% 20 Premium The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 95,000 Premium rating Advertising Sales 30,000 75,000 55,000 20% To Premium Rating 80% Advertising department Sales department Required: 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation. 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. Required 1 Required 2 Required 3 Sales 10% 60 Complete this question by entering your answers in the tabs below. Determine the total costs of the advertising and sales departments after using the direct method of allocation. Total Cost Allocated < Required 1 Required 2 >
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