es of the reciprocal method. ly includes the mutual services provid 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 Cancel d into the sup onal information.) ay features of the recipro Step-down allocation data explicitly includes the n Costs incurred Allocation of HR costs Allocation of Info. Systems costs Support Departments Operating Departments HR Info. Systems Corporate Consumer Total $ 90,000 $ 227,000 $ 995,000 $ 485,000 $ 1,797,000 (90,000) 18,000 39,600 32,400 $ 0 245,000 (245,000) 171,500 73,500 $ Total budgeted costs of operating departments 0 $ 1,206,100 $ 590,900 $1,797,000 "Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS). 0.10000 Print Done - Direct allocation data (Click the icon to view the direct allocation data.) of the recipro includes the m Costs incurred Allocation of HR costs HR $ 90,000 $ (90,000) Support Departments Info. Systems Operating Departments Corporate Consumer Total 227,000 $ 995,000 $ 49,500 Allocation of Info. Systems costs (227,000) 158,900 485,000 $ 1,797,000 40,500 68,100 $ 0 $ 0 $ 1,203,400 $ 593,600 $1,797,000 Total budgeted costs of operating departments Print Done Data table eatures of the reciprocal me plicitly includes the mutual 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) Support Departments Operating Departments - X Human Resources Information Systems Corporate Sales Consumer Sales $ 90,000 $ 227,000 $ 995,000 $ 485,000 ort o 400 Print Done 20 44 36 2,520 1,080 (Click the icon to view the step-down allocation a Read the requirements. atures of the reciprocal method. Olicitly includes the mutual services provid More info Each sales department conducts merchandising and marketing operations independently. Best Books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of Best Books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance. Print Done - X d into the s Homework: Chapter 15 Homework Question 3, E15-22 (s Part 1 of 7 Best 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.) Requirement 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided Interdepartmen Best 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 availall (Click the icon to view the (Click the icon to view the (Click the icon to view the 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