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Allocate the costs using repeated iterations Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal
Allocate the costs using repeated iterations
Now 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.) Data Table Support Deparments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred 90,000 $ 227,000 $ 993,000 $ 481,000 $ 1,791,000 Support Departments Allocation of HR costs Operating Departments (115,000) 23,000 55,200 36,800 Human Information Corporate Consumer Allocation of Info. Systems costs 25,000 (250,000) 135,000 90,000 Resources Systems Sales Sales 0 $ $ 1.183.200 $ 607,800 $ 1,791,000 Budgeted costs incurred before any Total budgeted costs of operating departments interdepartment cost allocations $ 90,000 $ 227,000 $ 993,000 $ 481,000 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 work supplied by human resources department Support Departments Operating Departments Budgeted number of employees 20 48 32 Reciprocal Method HR Info. Systems Corporate Consumer Total Support work supplied by information systems department Budgeted overhead costs Budgeted processing time in minutes) 400 2,160 1,440 before interdepartment cost allocations First allocation of HR costs Print Done First allocation of Info. Systems costs Second allocation of HR costs Second allocation of Info. Systems costs Enter any number in the edit fields and then click Check Answer. i Direct allocation data - Costs incurred $ Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 90,000 $ 227,000 $ 993,000 $ 481,000 $ 1,791,000 (90,000) 54,000 36,000 (227,000) 136,200 90,800 0 $ 0 $ 1,183,200 $ 607,800 $ 1,791,000 Allocation of HR costs Allocation of Info. Systems costs $ Total budgeted costs of operating departments Print Done X ci Step-down allocation data Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $ 90,000 $ 227,000 $ 993,000 $ 481,000 $ 1,791,000 (90,000) Allocation of HR costs 18,000 43,200 28,800 $ 0 245,000 Allocation of Info. Systems costs (245,000) 147,000 98,000 0 $ 1,183,200 $ 607,800 $ 1,791,000 Total budgeted costs of operating departments *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS), 0.10000Step by Step Solution
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