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E- books, an online book retailer, has two operating departments- corporate sales and consumer sales and two support departments uman resources and information systems. Each
E- books, an online book retailer, has two operating departments- corporate sales and consumer sales and two support departments uman resources and information systems. Each sales department conducts merchandising and marketing operations independently. E -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 2017 EE (Click the icon to view the data.) Read the requirements Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR-Human resources; Info. Information.) Support Departments Operating Departments Total Info. Systems Corporate Consumer $72,700$ 234,400 $ 998,270 $ 489,860 $ 1,795,230 HR Costs incurred Allocation of HR costs Allocation of Info. System costs Total budgeted costs of operating departments 43,620 127,855 0 $ 1,169,745 (72,700) 29,080 106,545 234,400 625,485$ 1,795,230 Requirement 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places.) Support department Percentage Choose from any list or enter any number in the input fields and then click Check
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