E-books, an online book retailer, has two operating departments corporate sales and consumer sales and two support departments-human resources and information systems. (Click the loon 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 A Data Table - X -X i Step-down allocation data may complete the Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 90,00D S 227,000 S 993.000 S 482,000 Use parentheses or a Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Bulgated number of employees Support work supplied by information systems department Budgeted processing time in minutes) Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred S 90,000 S 227,000 S 993,000 $ 482000 S 1,792.000 Allocation of HR 190,000) 18 000 39,600 32.400 S D 245.000 ( Allocation of Info Systems oosts (245,000) 171,500 73.500 S OS 1,204,100 $ 587 900 S 1,792,000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0.20000; intormation sytems (IS), 0.10000. 20 44 38 400 2.520 1,080 Print Done Print Done - X i Direct allocation data Bing mg depens by andeling Dosts. Emers u Torony Zero Dance $ Casis incurred Allocation of HR oosts Allocation of Info Systems costs Talal bueled casts of clealing departments Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90 000 S 227 COD S 99300D S 482 000 $ 1,792,000 190,000) ) 49.500 40,500 (227,000) 158.900 69,100 DS DS 1,201,400 S 590 600 $ 1,792,000 $ - X - X Requirements More Info 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 controller of E-books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance. 1. Describe the key features of the reciprocal method. 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Use (a) linear equations and (b) repeated iterations. 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Print Done Print Done (to to E-twocksan exline book reliler, has two aparating departments - Corporate sales and consumer sales and to support The following dala are available fex Spiler 2017 departmentshuman resources and information systers. Click the icon to view the data. Click the icon to view additional information) (Click the icon to view the direct alocation data.) (Click the icon to view the step down allocation data.) Read the reculcemants Requirement 2. Alloxate the support departments cars (human resources and information systems) to the wc operating departmenls 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-ine solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used:HR =huran resources; IS = information system) HR= $ $90 000 + 0.10000 IS ISE S227.000 + 0.20000 HR minus sign when decreasing departments by alkagaling costs. Enter a "O" for zero balances) Support Depaments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 90.000 $ 227,000 S 993.000 462,000 $ 1,792.000 Allocation of HR (115,000) ) 23,000 50,BOD 41,400 Allocation of Info Systems costs 25.000 (250,000) 157.500 67,500 OS Talal budgeted costs of operating departments O S 1,201,100 $ 590.900's 1,792 000 This time, use repeated iterations. (Round your final answers to the nearest whole dolar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a U" for any zero balances.) Support Departments Operating Departments Reciprocal Method HR Info Systems Corporate Consumer Total Budgaled overhead casts before interdepartment cost a locations First allocation of HR costs First allocation of Info Systems costs Second alocation of HR costs Second alocation of Info Systems E-books, an online book retailer, has two operating departments corporate sales and consumer sales and two support departments-human resources and information systems. (Click the loon 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 A Data Table - X -X i Step-down allocation data may complete the Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 90,00D S 227,000 S 993.000 S 482,000 Use parentheses or a Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Bulgated number of employees Support work supplied by information systems department Budgeted processing time in minutes) Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred S 90,000 S 227,000 S 993,000 $ 482000 S 1,792.000 Allocation of HR 190,000) 18 000 39,600 32.400 S D 245.000 ( Allocation of Info Systems oosts (245,000) 171,500 73.500 S OS 1,204,100 $ 587 900 S 1,792,000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0.20000; intormation sytems (IS), 0.10000. 20 44 38 400 2.520 1,080 Print Done Print Done - X i Direct allocation data Bing mg depens by andeling Dosts. Emers u Torony Zero Dance $ Casis incurred Allocation of HR oosts Allocation of Info Systems costs Talal bueled casts of clealing departments Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90 000 S 227 COD S 99300D S 482 000 $ 1,792,000 190,000) ) 49.500 40,500 (227,000) 158.900 69,100 DS DS 1,201,400 S 590 600 $ 1,792,000 $ - X - X Requirements More Info 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 controller of E-books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance. 1. Describe the key features of the reciprocal method. 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Use (a) linear equations and (b) repeated iterations. 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Print Done Print Done (to to E-twocksan exline book reliler, has two aparating departments - Corporate sales and consumer sales and to support The following dala are available fex Spiler 2017 departmentshuman resources and information systers. Click the icon to view the data. Click the icon to view additional information) (Click the icon to view the direct alocation data.) (Click the icon to view the step down allocation data.) Read the reculcemants Requirement 2. Alloxate the support departments cars (human resources and information systems) to the wc operating departmenls 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-ine solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used:HR =huran resources; IS = information system) HR= $ $90 000 + 0.10000 IS ISE S227.000 + 0.20000 HR minus sign when decreasing departments by alkagaling costs. Enter a "O" for zero balances) Support Depaments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 90.000 $ 227,000 S 993.000 462,000 $ 1,792.000 Allocation of HR (115,000) ) 23,000 50,BOD 41,400 Allocation of Info Systems costs 25.000 (250,000) 157.500 67,500 OS Talal budgeted costs of operating departments O S 1,201,100 $ 590.900's 1,792 000 This time, use repeated iterations. (Round your final answers to the nearest whole dolar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a U" for any zero balances.) Support Departments Operating Departments Reciprocal Method HR Info Systems Corporate Consumer Total Budgaled overhead casts before interdepartment cost a locations First allocation of HR costs First allocation of Info Systems costs Second alocation of HR costs Second alocation of Info Systems