E-books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departments-human resources and information systems. (Click the icon to view additional information.) ... Before we can allocate the support departments' costs to the two opera the linear equations for each support department. Then off-line solve for allocation of the support departments' costs. (Abbreviations used: HR = HW Score: 77.3 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 MacBook Pro 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? Print Done ments-corporate sales and consumer salesand two support The following data are available for September 2020: Step-down allocation data Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 80,000 $ 229,000 & 996,000 $ 481,000 $ 1,786,000 Allocation of HR costs (80,000) 16,000 38,400 25,600 $ 0 245,000 Allocation of Info. Systems costs (245,000) 171,500 73,500 $ Total budgeted costs of operating departments 0 $ 1,205,900 $ 580,100 $ 1,786,000 "Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS). 0.10000. Print Done 313 22SP - X irect allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 80,000 $ 229,000 $ 996,000 $ 481,000 $ 1.786,000 (80,000) 48,000 32,000 (229,000) 160,300 68,700 0 $ 0 $ 1,204,300 $ 581,700 $ 1,786,000 $ Total budgeted costs of operating departments Print Done VIGOGO