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Franklin Trust Corporation has two service departments: actuary and economic analysis. Franklin also has three operating departments: annuity, fund management, and employee benefit services. The annual costs of operating the service departments are $442,000 for actuary and $884,000 for economic analysis. Franklin uses the direct method to allocate service center costs to operating departments Other relevant data follow. Operating costs Revenue Annuity $570,000 $ 980,000 Fund management 970,000 1,260,000 Employee benefit services 670,000 1,160,000 *The operating costs are measured before allocating service center costs. Required a. Use operating costs as the cost driver for allocating service center costs to operating departments b. Use revenue as the cost driver for allocating service center costs to operating departments. Complete this question by entering your answers in the tabs below. Required A Required B Use operating costs as the cost driver for allocating service center costs to operating departments. (Round "Allocation Rate" to 2 decimal places.) Allocation of actuary cost Department Allocation Rate * Weight of Base Allocated Cost Annuity Fund management 1: C Required A Required B Use operating costs as the cost driver for allocating service center costs to operating departments. (Round "Allocation Rate" to 2 decimal places.) Allocation of actuary cost: Department Allocation Rate * Weight of Base = Allocated Cost Annuity Fund management EBS Total allocated cost X X Allocated Cost Allocation of economic analysis cost: Department Allocation Rate x Weight of Base Annuity X Fund management X EBS X Total allocated cost NA Required 8 > Required A Required B Use revenue as the cost driver for allocating service center costs to operating departments. (Round "Allocation Rate to 2 decimal places.. Allocated Cost Allocation of actuary Cost: Department Allocation Rate x Weight of Base Annuity Fund management EBS Total allocated cost Allocation of economic analysis cost: Department Allocation Rate x Weight of Base Allocated Cost Annuity X Fund management EBS Total alocated cost

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