ata Step-down allocation data Support Divisions Operating Divisions Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdivision cost allocations $ 83,000 S 239,000 $ 994.000 $ 486,000 Support work supplied by human resources division Budgeted number of employees 24 44 30 Support work supplied by information systems division Budgeted processing time (in minutes) 350 2,050 1,700 Support Divisions Operating Divisions HR Info. Systems Corporate Consumer Total Costs incurred $ 83,000 $ 239,000 S 994,000 $ 488,000 $ 1,802,000 20,327 Allocation of HR costs (83,000) 37,265 25,408 $ 0 259,327 Allocation of info. systems costs (259,327) ( 141,765 . 117,562 $ OS 1,173,030 $ 628,970 $ 1,802.000 Total budgeted costs of operating divisions Proportions for services provided to other support divisions: HR, 0.24490: IS, 0.08637 Direct allocation data Print Done ethod. (Round percentages to three decimal places, X.XXX%, and your final answers to the nearest whole balance, make sure to enter "O" in the appropriate field.) $ Costs incurred Allocation of HR costs Support Divisions Operating Divisions HR Info. Systems Corporate Consumer Total 83,000 S 239.000 $ 994,000 $ 486,000 $ 1,802,000 (83,000) 49,351 33,649 (239,000) 130,653 108,347 Allocation of Info. systems costs $ OS 0 $ 1,174,004 $ 627,996 $ 1,802,000 $ Total budgeted costs of operating divisions Print Done TICIP TTIE SUIVE US LICAE Paysa McIIIIITIEP Clear all Check answer O-books, an online book retailer, has two operating divisions-corporate sales and consumer sales and two support divisionsuman resources and information systems. Each sales division conducts merchandising and marketing operations independently. O-books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of O-books reads a widely used textbook that states "the reciprocal method is conceptually the most defensible." He seeks your assistance. The following data are available for September. (Click the icon to view the data.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) Required The reciprocal allocation method explicitly includes the mutual services provided among all support departments. Interdepartmental relationships are fully incorporated into the support department cost allocations. Requirement 2. Allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. Before we can allocate the support divisions' costs to the two operating divisions using the reciprocal method, first determine the linear equations for each support division. Then, solve for HR (human resources) first and then I (Information systems), so that you may complete the allocation of the support divisions' costs. (Round the dollar amounts to the nearest whole dollar. Enter the proportions to five decimal places.) HR= $ 83,000 + 0.08537 Is IS= $ 239,000 0.24490 HR + + Now, allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. (Round percentages to three decimal places, XXXX%, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing divisions by allocating costs. Complete all answer boxes. For amounts with a $0 balance, make sure to enter "O' in the appropriate field.) Support Divisions Operating Divisions Human Information Resources Systems Corporate Consumer Total Costs Incurred 83,000 239,000 994,000 486,000 1,802,000 Allocation of human resources costs Allocation of information systems costs Total budgeted costs of operating divisions Help me solve this Etext pages Get more help Clear all Check
