Question

In: Accounting

HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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 $ 94,000 Premium rating 29,000 Advertising 74,000 Sales 54,000 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.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 percentages) to the other departments is shown in the following table: 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 $ 96,000 Premium rating 31,000 Advertising 76,000...
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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 $ 83,000 Premium rating 18,000 Advertising...
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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 $ 89,000 Premium rating 24,000 Advertising...
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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 $ 89,000 Premium rating 24,000 Advertising...
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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...
HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production 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 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 $ 93,000 Premium rating 28,000 Advertising...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two operations departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Actuarial Rating Marketing Sales Actuarial 0 % 10 % 10 % 80 % Rating 10 % 0 % 30.0 % 60.0 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $ 80,000...
The Long Term Care Plus Company has two service departments - actuarial and premium rating, and...
The Long Term Care Plus Company has two service departments - actuarial and premium rating, and two operations departments - marketing and sales. The distribution of each service department's efforts to the other departments is shown below: Actuarial Rating Marketing Sales Actuarial 0% 10% 10% 80% Rating 20% 0% 30% 50% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $10,000 Premium Rating $200,000 Marketing $62,000 Sales $67,000 The total cost accumulated...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two operations departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROMTO Actuarial Rating Marketing SalesActuarial0% 10% 10% 80%Rating20% 0% 30.0% 50.0% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial$10,000Premium Rating$200,000Marketing$62,000Sales$67,000 The total cost accumulated in the sales department using the reciprocal method is (calculate...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and...
The Long Term Care Plus Company has two service departments — actuarial and premium rating, and two operations departments — marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Actuarial Rating Marketing Sales Actuarial 0 % 40 % 20 % 40 % Rating 25 % 0 % 37.5 % 37.5 % ​ The direct operating costs of the departments (including both variable and fixed costs) were as follows: Actuarial $...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT