Best Books, an online book retailer, has two operating departmentscorporate 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 allocations 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 salve 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 whale dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "O" for zero balances.) Total Costs incurred Support Deparments Operating Departments HR Info. Systems Corporate Consumer 80000 229000 996000 480000 (105000) 21000 504001 33600 25000 (250000) 1785000 Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments 0 E15-22 (similar to) Step-down allocation data Best Books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. (Click the icon lo view additional information.) Support Departments Operating Departments Info HR Systems Corporate Consumer Total Costs incurred $ 80,000 $ 229,000 S 996,000 S 480,000 $ 1,785,000 () Allocation of HR costs (80,000) 16,000 38,400 25,600 $ 0 245,000 Allocation of Info. Systems costs (245,000) 171,500 73,500 Total budgeted costs of operating $ OS 1,205,900 S 579,100 $ 1,785,000 departments *Proportions for services provided to other support departments: human resources (HR), 0.20000: Data Table Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales LIS $ 80,000 $ Print 229,000 $ 996,000 $ 480,000 Done Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Budgeted number of employees Support work supplied by information systems department Budgeted processing time (in minutes) Direct allocation data 20 48 32 al 400 2.520 1,080 Print Done Support Departments Operating Departments Info. HR Systems Corporate Consumer Total Costs incurred $ 80,000 $ $ 229,000 $ 996,000 $ 480,000 $ 1,785,000 Allocation of HR costs (80,000) 48,000 32,000 (229,000) 160,300 68.700 Allocation of Info. Systems costs Total budgeted costs of operatings 0 $ 0 $ 1,204,300 $ 580,700 $ 1,785,000 departments Enter any number in the edit Tieras anta then click Check Answer. 4 parts remaining 1x E15-22 (similar to) is Question Help O Best Books, an online book retailer, has two operating departmentscorporate sales and consumer The following data are available for September 2017: sales and two support departmentshuman resources and information systems. ES: (Click the icon to view the data.) A(Click the icon to view additional information.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) Read the requirements. allocations. Requirement 2. Allocate the support departments' costs (human Requirements ethod. Before we can allocate the support departments' costs to the two or each support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation bn system.) HR- $80,000 + 0.10000 1. Describe the key features of the reciprocal method. IS 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Use IS= $229,000 + 0.20000 HR (a) linear equations and (b) repeated iterations. 3. In the case presented in this exercise, which method (direct, step-down, or Now allocate the support departments' costs (human resources reciprocal) would you recommend? Why? d proportions to five decimal places, XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus Support Print Done HR Costs incurred 80000 229000 996000 480000|| 1785000 Allocation of HR costs (105000) ) 21000 50400 33600 Allocation of Info. Systems costs 25000 (250000) ol 0 0 Total budgeted costs of operating departments Enter any number in the edit fields and then click Check