1. Allocate support department costs to operating department costs using direct method.

2. Allocate sipport department costs to operatinf departmenta using step down method. rank the support depaetments based on percentage if their services procided to other support departments

3. Why do we allocate costs to aupporting departments?

PLEASE REFER TO THIS CASE TO ANSWER QUESTIONS 1-3 Dragon Galore, an online book retailer, has two operating departments - Corporate Sales and Consumer Sales; and two support departments - Human Resources and Information Systems. Each sales department conducts merchandising and marketing operations independently. Books Galore uses number of employees to allocate Human Resources costs, and processing time to allocate Information Systems costs. The following data are available for September 2018: Support departments Operating departments Human Resources Information Corporate Consumer Systems Sales Sales Budgeted costs incurred $72,700 $234,400 $998,270 $489,860 Budgeted number of employees 21 41 28 320 1920 1600 Budgeted processing time (in minutes)