= H Requirements E-book support (Cli 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? Require Print Done - X2, E16-22 (book/s Part 2 of 7 two Step-down allocation data The Support Departments Operating Departments Info. HR Systems Costs incurred $ 72,700 $ Corporate Consumer Total 234,400 $ 998,270 $ 489,860 $1,795,230 Rea Allocation of HR costs (72,700) 16,777 33,554 22,369 $ Allocation of Info. Systems costs . Interdepartm Total budgeted costs of operating departments 251,177 (251,177) 137,006 114,173 $ 0 $ 1,168,830 $ 626,402 $1,795,230 The reci Require...... vor whores voor een reeeere one to operating departments. Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determin so that you may complete the allocation of the support departments' costs. (Abbreviations used: HR = human resources; IS = informatio HR= + *Proportions for services provided to other support departments: human resources (HR), 0.23077; information sytems (IS), 0.08333. Print Done IS= Data table - X Direct allocation data HR Systems Corporate Consumer Total - A B C D E Costs incurred $ 72,700 $ 234,400 $ 998,270 $ 489,860 $1,795,230 SUPPORT DEPARTMENTS OPERATING DEPARTMENTS Allocation of HR costs (72,700) 43,620 29,080 Human Information Resources Systems Corporate Consumer Sales Sales Allocation of Info. Systems costs (234,400) 127,853 106,547 S 72,700 $ 234,400 $ 998,270 $489,860 Total budgeted costs of operating $ 0 S 0 $ 1,169,743 $ 625,487 $ 1,795,230 denartments 2 Budgeted costs incurred before any 3 Interdepartment cost allocations Support work supplied by human 4 resources department 5 Budgeted number of employees Support work supplied by information 6 systems department 0 21 42 28 Help me 7 Budgeted processing time (in minutes) 320 1,920 1,600 Print Done