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Best Books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. (Click the icon
Best Books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human 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.) (Click the icon to view the step-down allocation data.) Read the requirements. Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determine the linear equations for each support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used: HR = human resources; IS = information system.) HR= $80,000 + 0.10000 IS IS= $229,000 + 0.20000 HR 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.) Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Support Deparments HR 80000 Info. Systems 229000 Operating Departments Corporate Consumer Total 991000 485000 1785000
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