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&E15-22 (similar to) Question Help * I- books, an onine book retalet has two operating departments-corporate he sales and consumer sales and two support departments-human
&E15-22 (similar to) Question Help * I- books, an onine book retalet has two operating departments-corporate he sales and consumer sales and two support departments-human resources nd information systems folowing data are available for September 2017 (Click the icon to view the data) (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 tecuirements Requirement 1. Describe the key festures of the reciprocal method The reciprocal allocation method explicitly includes the mutual services provided among all support departments are fuly incorporated into the support department cost alocations Requirement 2. Allocate the support departmente' costs (human resources and infomation systems) to the two operating departments using the reciprocal method Before we can allocate the support departmets costs to the two operating departments using the reciprecal method lets first determine the linear equations for each support department. Then off-line solve for HR and 5 Information Systems s* that you may complete the allocation of the support departments' costs. (Abbreviations used: HR human resources, IS information system) HR- $90,000010000 IS IS: $227000 020000 HR Now alocate the support departments costs (uman resources and information systems) to the two operating departments using the reciprocal method. Round proportions to five decimal places,XxxxxX and your final answers to the nearest whole dollar. Use paremheses or aminus sign when decreasing departments by allocating costs. Emer a "O for zero balances. Support Deparments Operating Departmets HR Info. Systems Corporate Consumer Total Costs incurred Allocation of HR oosts Allocation of Info. Systems cost8 Total budgeted costs of operating departments
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