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 loan 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 among all support departments Interdepemontal relationships are 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, lor'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.) $90,000+ 0.10000 IS HR- IS $227,000 0.20000 HR 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 zoro balances.) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred 90,000 227,000 991,000 483,000 1.791,000 Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments - Data table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 90,000 $ 227,000 $ 991,000 $ 483,000 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Budgeted number of employees Support work supplied by information systems department Budgeted processing time (in minutes) 20 44 36 400 2,520 1,080 Print Done Read the requirements. .. cribe the key features of the reciprocal method. table 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. Print Done Print Done Is of operating departments ment 1. Describe the key features of the reciprocal method. Brocal allocation method explicitly includes the mutual services provided among all support departments Interdeparta Direct allocation data - Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Support Departments Operating Departments HR Info. Systems Corporate Consumer Total $ 90,000 $ 227,000 $ 991,000 $ 483,000 $ 1.791,000 (90,000) 49,500 40,500 (227,000) 158,900 68,100 0 $ 0 $ 1.199,400 $ 591,600 $ 1.791,000 Print Done on of Info. Systems costs udgeted costs of operating departments Ip me solve this Etext pages Get more help Clear all Check answe Pqyuram. Bascribe the law feature of the concocal.method he Step-down allocation data lat pg er fo ea od HE Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred 90,000 $ 227,000 $ 991,000 $ 483,000 $ 1.791,000 Allocation of HR costs (90,000) 18,000 39,600 32,400 $ 0 245,000 Allocation of Info Systems costs (245,000) 171,500 73,500 Total budgeted costs of operating departments 0 $ 1,202,100 $ 588,900 $ 1.791,000 *Proportions for services provided to other support departments: human resources (HR), 0 20000; Information sytems (IS), 0.10000. bw cid a tos llo Print Done old Lep-down allocation data EUR Requirements Cos Allo 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? Alla Tota dep *Pro syte Print Done Print Done