E-books, an online book retailer, has two operating departments corporate sales and consumer salesand two support departments-human resources and information systems. (Click the icon to view additional information.) The following data are available for September 2020: (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. (94.041) 128.051 HR Info Systems Corporate Consumer Total Costs incurred $ 72,700 $ 234,400 $ 998,270 $ 489.860 $ 1.795,230 Allocation of HR costs 21.702 43.404 28,935 Allocation of Info Systems costs 21,341 (256,102) 106,710 $ Total budgeted costs of operating departments 0 $ 1,169,725 $ 625,505 $ 1.795,230 This time, use repeated iterations. (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 any zero balances. Note that rounding differences may occur in the totals after allocation.) Support Departments Operating Departments Reciprocal Method HR Info. Systems Corporate Consumer Total Budgeted overhead costs before interdepartment cost allocations First allocation of HR costs First allocation of Info Systems costs Second allocation of HR costs Second allocation of Info Systems costs Data Table A B 1 SUPPORT DEPARTMENTS Human Information Resources Systems D E OPERATING DEPARTMENTS Corporate Consumer Sales Sales 2 $ 72,700$ 234,400 $ 998,270 $ 489,860 Budgeted costs incurred before any 3 interdepartment cost allocations Support work supplied by human 4 resources department 5 Budgeted number of employees Support work supplied by information 6 systems department Budgeted processing time (in 7 minutes) 0 21 42 28 320 0 1,920 1,600 Direct allocation data Costs incurred Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 72,700 $ 234,400 $ 998,270 $ 489,860 $ 1,795,230 (72,700) 43,620 29,080 (234,400) 127,853 106,547 Allocation of HR costs Allocation of Info. Systems costs $ 0 $ 0 $ 1,169,743 $ 625,487 $ 1,795,230 Total budgeted costs of operating departments Step-down allocation data Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $ 998,270 $ 489,860 $ 1,795,230 72,700 $ (72,700) 234,400 $ 16,777 Allocation of HR costs 33,554 22,369 $ 0 251,177 (251,177) Allocation of Info. Systems costs 137,006 114,173 $ 0 $ 1,168,830 $ 626,402 $ 1,795,230 Total budgeted costs of operating departments *Proportions for services provided to other support departments: human resources (HR), 0.23077; information sytems (IS), 0.08333. Requirements 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