Homelife life insurance company has two service departments

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 percentges) to the other departments is
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
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.

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"