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: (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 IN Data Table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales erd $ 72,700 $ 234,400 $ 998,270 $ 489,860 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) 21 42 28 320 1.920 1,600 Print Done $ Costs incurred Allocation of HR costs 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) 127,863 106,547 Allocation of Info Systems costs Total budgeted costs of operating departments 0$ 0 $ 1.169,743 $ 625,487 $ 1.795,230 Support Departments 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) 16,777 33,554 22,369 0 251,177 Allocation of Info Systems costs (251,177) 137,006 114,173 Total budgeted costs of operating departments 0 $ 1.168.830 $ 626,402 $ 1.795,230 *Proportions for services provided to other support departments human resources (HR), 0.23077, information sytems (IS), 0.08333 1 ments 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