O-books, an online book retailer, has two operating departmentscorporate 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 2020 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 into the support department cost allocations Interdepartmental relationships fully incorporated Requirement 1. Describe the key features of the reciprocal method The reciprocal location memod eplich includes the mutual services provided among all support departments Interdipartimental relationships are tally incorporated into the supportent cost allocations Requirement 2. Alocate the support department costs human resources and information systems to the two operating departments using the reciprocal method Datore we can allocate the supportarent could be the ho corating departments using the reciprocal method was first wermine the line outions for each spor deportent Theat-ine ove for HR and is information Sya), so that you may complete the location of the support department costs. (Abbreviations used HR - human resources, IS - Information system) HR $90,000 0.0000 IS IS227.000. 020000 HR Now allocate the support departments Corts (human resources and information system) to the hue operating departments using the reciprocal method (Round preconions to five decimal place X000% and your final answers to the whole dollar Users or a minus sign when decreasing departments by locating costs Era o forze biances) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Concurred 90000 227000 994000 Allocation of HRCOS Allocation of Systems costs Total budgeted costs of operating departments 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? More info Each sales department conducts merchandising and marketing operations independently. O-books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of 0-books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance. Data table D E 1 B SUPPORT DEPARTMENTS Human Information Resources Systems OPERATING DEPARTMENTS Corporate Consumer Sales Sales S 90,000 $ 227,000 $ 994,000 $ 484,000 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 Budgeted processing time in 7 minutes) 0 20 44 36 400 0 2,520 1,080 Direct allocation data HR Costs incurred Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments Support Departments Operating Departments Info Systems Corporate Consumer Total $ 90,000 $ 227,000 $ 994,000 $ 484,000 $ 1,795,000 (90,000) 49,500 40,500 (227,000) 158,900 68,100 OS OS 1,202,400 $ 592,600 S 1,795,000 0 Step-down allocation data HR Support Departments Operating Departments Info. Systems Corporate Consumer Total Costs incurred $ 90,000 $ 227,000 $ 994,000 $ 484,000 $ 1,795,000 Allocation of HR costs (90,000) 18,000 39,600 32,400 $ 245,000 (245,000) Allocation of Info. Systems costs 171,500 73,500 0 $ 1,205,100 $ 589,900 $ 1,795,000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS), 0.10000 0 $