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2. E-books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. (Click the icon to
2. E-books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. (Click the icon to view additional information.) The following data are available for September 2017: (Click the icon to view the data.) (Click the icon to view the direct allocation data.) 4(Click the icon to view the step-down allocation data.) Read the requirements'. Requirement 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided (1) - . Interdepartmental relationships (2) - fully incorporated into the support department cost allocations. Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, .XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for zero balances.) Support Deparments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments This time, use repeated iterations. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Reciprocal Method Budgeted overhead costs before interdepartment cost allocations First allocation of HR costs First allocation of Info. Systems costs Second allocation of HR costs Second allocation of Info. Systems costs Third allocation of HR costs Third allocation of Info. Systems costs Fourth allocation of HR costs Fourth allocation of Info. Systems costs Total budgeted overhead of operating departments Requirement 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why
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