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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 SalesActuarial - 80% 10% 10%Premium 20% - 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 80,000Premium rating 15,000Advertising 60,000Sales 40,000 Required:
Problem 1. Determine the total costs of the advertising and sales departments after using the direct method of allocation.
Problem 2. Determine the total costs of the advertising and sales departments after using the step method of allocation.
Problem 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation.
Determine the inventory balances at the end of the first month of operations.Applied factory overhead at a rate of 75% of direct labor cost
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How much is the ending inventory of plastic to be reported on the company's balance sheet at September 30
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