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an online book retailer, has two operating divisionscorporate sales and consumer salesand two support divisionshuman resources and information systems. Each sales division conducts merchandising and
an online book retailer, has two operating divisionscorporate sales and consumer salesand two support divisionshuman resources and information systems. Each sales division conducts merchandising and marketing operations independently. uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September. LOADING...(Click the icon to view the data.) Support Divisions Operating Divisions Human Resources Information Systems Corporate Sales Consumer Sales Budgeted costs incurred before any interdivision cost allocations $78,000 $235,000 $998,000 $483,000 Support work supplied by human resources division Budgeted number of employees 22 42 18 Support work supplied by information systems division Budgeted processing time (in minutes) 360 2,160 1,800 pop-up content ends RequiredLOADING... Question content area bottom Part 1 Requirement 1. Allocate the support divisions' costs to the operating divisions using the direct method
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