HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and twoproduction departments (advertising and sales). The distribution of each service department's efforts (inpercentages) to the other departments is shown in the following table:ActuarialPremium ratingAdvertisingSalesFromActuarialPremiumThe direct operating costs of the departments (including both variable and fixed costs) are:ActuarialPremiumRating80%25%$ 87,00022,00067,00047,000Advertising departmentSales departmentToAdvertising Sales15%5%15Required 1 Required 2 Required 3Required: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 ofallocation.Complete this question by entering your answers in the tabs below.60Determine the total costs of the advertising and sales departments after using the direct method of allocation.Total Cost AllocatedRequired 1Required 2 >

Overhead allocation summary:The overhead allocation summary indicates the techniques of allocation…

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 Actuarial Advertising Sales 15% 5% 15 The direct operating costs of the departments (including both varlable and fixed costs) are: Actuarial $ 87,000 Premium rating Advertising Sales 22,000 67,000 47,000 Premium Rating 80% 25% To 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 Complete this question by entering your answers in the tabs below. 60 Determine the total costs of the advertising and sales departments after using the direct method of allocation. Total Cost Allocated Required 1 Required 2 >

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 Actuarial Advertising Sales 15% 5% 15 The direct operating costs of the departments (including both varlable and fixed costs) are: Actuarial $ 87,000 Premium rating Advertising Sales 22,000 67,000 47,000 Premium Rating 80% 25% To 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 Complete this question by entering your answers in the tabs below. 60 Determine the total costs of the advertising and sales departments after using the direct method of allocation. Total Cost Allocated Required 1 Required 2 >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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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: 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 >
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: To From Actuarial Premium Rating Advertising Sales Actuarial - 70% 15% 15% Premium 20% 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $81,000 Premium rating 16, 000 Advertising 61, 000 Sales 41, 000 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.
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: To From Actuarial Premium Rating Advertising Sales Actuarial — 75 % 10 % 15 % Premium 20 % — 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 88,000 Premium rating 23,000 Advertising 68,000 Sales 48,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or 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.
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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: To From Actuarial Premium Rating Advertising Sales Actuarial — 80% 10 % 10 % Premium 20% — 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 80,000 Premium rating 15,000 Advertising 60,000 Sales 40,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or 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. What is the…
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: 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 $ 91,000 Premium rating 26,000 Advertising 71,000 Sales 51,000 Required: 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
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: 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 $ 99,000 Premium rating 34,000 Advertising 79,000 Sales 59,000 1. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
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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 From Actuarial Premium Actuarial Actuarial Premium rating Advertising Sales Premium Rating 80% To 4 20% The direct operating costs of the departments (including both variable and fixed costs) are $ 92,000 27,000 72,000 52,000 Advertising Sales 10% 10% 60 20 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 ad 2
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