E-books, an online book retailer, has two opera Next question 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 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided Interdepartmental relationships fully incorporated into the support department cost 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 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= IS- 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 "o" for zero balances.) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred 72,700 234.400 998,270 489,860 1.795,230 Allocation of HR costs (72,700) 0 43,620 29,080 Allocation of Info Systems costs (234,400) 127.855 106,545 Total budgeted costs of operating departments 1.169,745 625,485 1.795 230 0 0 rounding differences may occur in the totals after allocation.) Support Departments Reciprocal Method HR Info Systems Budgeted overhead costs before interdepartment cost allocations 72,700 234.400 First allocation of HR costs Operating Departments Corporate Consumer Total 998, 270 489,960 First allocation of Info Systems costs Second allocation of HR costs Second allocation of Info. Systems costs Third allocation of HR costs Third allocation of Info Systems costs Fourth allocation of HR costs Fourth allocation of Info Systems costs Total budgeted overhead of operating departments Requirement 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Recommendation: The because it is more accurate than the other two methods when there are mutual relationships among support departments Why would you recommend this method? Data table - Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment cost allocations $ 72,700 $ 234,400 $ 998,270 $ 489,860 Support work supplied by human resources department Budgeted number of employees 21 42 28 Support work supplied by information systems department Budgeted processing time (in minutes) 320 1,920 1,600 Direct allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating Support Departments Operating Departments Info HR Systems Corporate Consumer Total $ 72,700 $ 234,400 $ 998,270 $ 489,860 $ 1.795,230 (72700) 43,620 29,080 (234,400) 127,853 106,547 $ 0$ 0 $ 1,169,743 $ 625,487 $ 1,795,230 Print Done uirement 3. In the case presented in this exercise which method (dirart etan.down or rarinn all..... TAL I