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Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the step method of allocation. Step Method Total Cost Allocated Advertising department Sales department

Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the step method of allocation. Step Method Total Cost Allocated Advertising department Sales department

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the step method of allocation. Step Method Total Cost Allocated Advertising department Sales department <Required 1 Required 3 Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Reciprocal Method Advertising department Total Cost Allocated Sales department
Transcribed Image Text:Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the step method of allocation. Step Method Total Cost Allocated Advertising department Sales department <Required 1 Required 3 Required 1 Required 2 Required 3 Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Reciprocal Method Advertising department Total Cost Allocated 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: From Actuarial Premium To Actuarial Premium Rating Advertising Sales 80% 10% 10% 20% 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 83,000 Premium rating 18,000 63,000 43,000 Advertising Sales 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 direct method of allocation. Direct Method Total Cost Allocated Advertising department Sales department 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: From Actuarial Premium To Actuarial Premium Rating Advertising Sales 80% 10% 10% 20% 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 83,000 Premium rating 18,000 63,000 43,000 Advertising Sales 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 direct method of allocation. Direct Method Total Cost Allocated Advertising department Sales department Required 1 Required 2 >
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