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please explain your answers. this is all the information given E - books, an online book retailer, has two operating departments-corporate sales and consumer sales-and

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please explain your answers. this is all the information given

E - books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. (Clicktheicontoviewadditionalinformation.) ThefollowingdataareavailableforSeptember2020-(Clicktheicontoviewthedata.)(Clicktheicontoviewthedirectallocationdata.)(Clicktheicontoviewthestep-downallocationdata.)Readtherequirements. 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? 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. 0.10000 . Requirement 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided among all support departments Interdepartmental relationships fully incorporated into the support department cost allocations. Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determine the linear equations for each support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used: HR = human resources; IS = information system.) HR=IS=++ Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, . XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for zero balances.)

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