Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 icon to view additional information) The following data are available for September 2017 (Cack the icon to view the data) Click the icon to view the direct location data) (Click the icon to view estep-down allocation data) Read the rooirements . 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, lets first determine the linear equations for each support department. Then offline 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- 590,000 0.10000 IS 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, XO000X and your final answers to the nearest whole dollar Use parentheses or a minus sign when decreasing departments by allowing costs. Enter a 'o' for zero balances) Support Deparments Operating Departments Info Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info Systems cos Total budgeted costs of operating departments Thule step-down allocation data.) Read the requirements. t departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. departments' costs to the at you may complete the 200 IS 1 More Info - X s for each support department. information system.) 000 HR 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. nts' costs (human resource Hollar. Use parentheses or pund proportions to five decimal pla Suppo Print Done HR departments -books, an online book retailer, has two operating departments corporate sales and consumer 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) Diclick the icon in the dislocation de 0 Data Table cons quirement 2. Allocate the support departme Fore we can allocate the support departments IS (Information Systems), so that you may IR= $90,000 + 0.10000 IS Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales pport de ystem 15- $227,000+ 0.20000 $ HRI 90,000 $ 227,000 $ 995,000 $ 480,000 v allocate the support departments' costs (he answers to the nearest whole dollar. Use Pl ns to fiv 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) 400 2,520 1,080 sts incurred cation of HR costs cation of Info Systems costs Print Done budgeted costs of operating departments any number in the edit fields and then click Check Answer. ok retailer, has two operating departments corporate sales and consumer t departments-human resources and information systems. ew 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 i Direct allocation data e the support deg he support depar tems), so that you Spartme 0.10000 0.20000 Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90,000 $ 227,000 $ 995,000 $ 480,000 $ 1,792,000 (90,000) 49,500 40,500 (227,000) 158,900 68,100 0 $ 1,203,400 $ 588,600 $ 1,792,000 Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments + departments' co rest whole dollar. ve decir 0 $ Print Done ms costs operating departments book retailer, has two operating departments corporate sales and consumer port departments human resources and information systems. 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.) 0 Step-down allocation data cate the support deg ate the support depar Systems), so that you partm 0.10000 Costs incurred Allocation of HR costs Support Departmehts Operating Departments HR Info Systems Corporate Consumer Total 90,000 $ 227,000 $ 995,000 $ 480,000 $ 1,792,000 (90,000) 18,000 39.600 32.400 $ 0.20000 port departments' cd nearest whole dollar. ve dec 245,000 Allocation of Info. Systems costs (245,000) 171,500 73,500 Total budgeted costs of operating departments 0 $ 1,206,100 $ 585,900 $ 1,792,000 Proportions for services provided to other support departments: human resources (HR), 0.20000, information sytoms (18) 0.10000 Print Done stems costs of operating departments the edit fields and then click Check Answer. Clear All upalunents corporate sales and consumer puit uopaliments human resources and information systems. icon to view additional information.) The following data are available for September 20 (Click the icon to view the data.) (Click the icon to view the direct allocation dat (Click the icon to view the step-down allocation Read the requirements. 2. Allocate the support departments' costs (hun allocate the support departments' costs to the tion Systems), so that you may complete the 0,000 + 0.10000 IS i Requirements meti s for infor 1,000+ 0.20000 HR 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? support departments' costs (human resource the nearest whole dollar. Use parentheses or bund Suppo HR Print Done costs Systems costs osts of operating departments 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 icon to view additional information) The following data are available for September 2017 (Cack the icon to view the data) Click the icon to view the direct location data) (Click the icon to view estep-down allocation data) Read the rooirements . 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, lets first determine the linear equations for each support department. Then offline 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- 590,000 0.10000 IS 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, XO000X and your final answers to the nearest whole dollar Use parentheses or a minus sign when decreasing departments by allowing costs. Enter a 'o' for zero balances) Support Deparments Operating Departments Info Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info Systems cos Total budgeted costs of operating departments Thule step-down allocation data.) Read the requirements. t departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. departments' costs to the at you may complete the 200 IS 1 More Info - X s for each support department. information system.) 000 HR 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. nts' costs (human resource Hollar. Use parentheses or pund proportions to five decimal pla Suppo Print Done HR departments -books, an online book retailer, has two operating departments corporate sales and consumer 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) Diclick the icon in the dislocation de 0 Data Table cons quirement 2. Allocate the support departme Fore we can allocate the support departments IS (Information Systems), so that you may IR= $90,000 + 0.10000 IS Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales pport de ystem 15- $227,000+ 0.20000 $ HRI 90,000 $ 227,000 $ 995,000 $ 480,000 v allocate the support departments' costs (he answers to the nearest whole dollar. Use Pl ns to fiv 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) 400 2,520 1,080 sts incurred cation of HR costs cation of Info Systems costs Print Done budgeted costs of operating departments any number in the edit fields and then click Check Answer. ok retailer, has two operating departments corporate sales and consumer t departments-human resources and information systems. ew 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 i Direct allocation data e the support deg he support depar tems), so that you Spartme 0.10000 0.20000 Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90,000 $ 227,000 $ 995,000 $ 480,000 $ 1,792,000 (90,000) 49,500 40,500 (227,000) 158,900 68,100 0 $ 1,203,400 $ 588,600 $ 1,792,000 Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments + departments' co rest whole dollar. ve decir 0 $ Print Done ms costs operating departments book retailer, has two operating departments corporate sales and consumer port departments human resources and information systems. 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.) 0 Step-down allocation data cate the support deg ate the support depar Systems), so that you partm 0.10000 Costs incurred Allocation of HR costs Support Departmehts Operating Departments HR Info Systems Corporate Consumer Total 90,000 $ 227,000 $ 995,000 $ 480,000 $ 1,792,000 (90,000) 18,000 39.600 32.400 $ 0.20000 port departments' cd nearest whole dollar. ve dec 245,000 Allocation of Info. Systems costs (245,000) 171,500 73,500 Total budgeted costs of operating departments 0 $ 1,206,100 $ 585,900 $ 1,792,000 Proportions for services provided to other support departments: human resources (HR), 0.20000, information sytoms (18) 0.10000 Print Done stems costs of operating departments the edit fields and then click Check Answer. Clear All upalunents corporate sales and consumer puit uopaliments human resources and information systems. icon to view additional information.) The following data are available for September 20 (Click the icon to view the data.) (Click the icon to view the direct allocation dat (Click the icon to view the step-down allocation Read the requirements. 2. Allocate the support departments' costs (hun allocate the support departments' costs to the tion Systems), so that you may complete the 0,000 + 0.10000 IS i Requirements meti s for infor 1,000+ 0.20000 HR 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? support departments' costs (human resource the nearest whole dollar. Use parentheses or bund Suppo HR Print Done costs Systems costs osts of operating departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions