book retailer, has two operating departments: corporate sales and consumer sales. It also has two support departments: human resources and information systems. Each sales department conducts merchandising and marketing operations independently. uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of reads a widely used textbook that states. that 'reciprocal method is conceptually the most defensible." He seeks your assistance. The following data are available for September 2012: Describe the key features of the reciprocal method. Allocate the support departments' costs (human resource and information systems) to the two operating departments using the reciprocal method. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided among are fully incorporated in the support department cost allocations. 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 System), so that you may complete the allocation of the support departments' costs. Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round percentage to the decimal places, XXXX%, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.) In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Recommendation: The direct method reciprocal method step-down method because it is more accurate than the other two methods when there are mutual relationships among support departments. Why would you recommend this method? It fully incorporates interdepartmental relationships into the support departments cost allocation. It is easy to compute and understand, and being precise is not necessary. It ranks support departments in the order that the allocation is to proceed and partially recognizes the mutual services provided