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ASAP please, Vision Books an online book retailer, has two operating divisionscorporate sales and consumer salesand two support divisionshuman resources and information systems. Each sales
ASAP please, Vision Books 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.
Vision Books 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.
- Data Support Divisions Human Information Resources Systems Operating Divisions Corporate Consumer Sales Sales Budgeted costs incurred before any interdivision cost allocations $ 73,000 $ 237,000 $ 999,000 $ 488,000 Support work supplied by human resources division Budgeted number of employees Support work supplied by information systems division 21 56 24 Budgeted processing time (in minutes) 340 2,040 1,700 Print Done - X i Required 1. Allocate the support divisions' costs to the operating divisions using the direct method. 2. Rank the support divisions based on the percentage of their services provided to other support divisions. Use this ranking to allocate the support divisions' costs to the operating divisions based on the step-down method. 3. How could you have ranked the support divisions differently? Print DoneStep by Step Solution
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