O-books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman 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.) 2 (Click the icon to view the step-down allocation data.) Read the 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? Requirement 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided Interdepartmental relationships V fully incorporated into the support department cost allocatid Print Done Data Ta Step-down allocation data Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 75,000 $ 230,000 $ 995,000 $ 485,000 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) 25 60 Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $ 75,000 $ 230,000 $ 995,000 $ 485,000 $ 1,785,000 Allocation of HR costs (75,000) 15,000 36,000 24,000 $ 0 245,000 Allocation of Info. Systems costs (245,000) 196,000 49.000 $ 0 $ 1,227,000 $ 558,000 $ 1,785,000 Total budgeted costs of operating departments *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS). 0.10000 40 375 2.700 675 plata Print Done Print Done Costs incurred Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 75,000 $ 230,000 $ 995,000 $ 485,000 $ 1,785,000 (75,000) 45,000 30.000 (230,000 184,000 46,000 0 $ 0 $ 1,224,000 $ 561,000 $ 1,785,000 Click to select your answer(s) and then click Check Answer. Allocation of HR costs Allocation of Info. Systems costs parts remaining Check Answer Total budgeted costs of operating departments