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Please read all requirements, as not all parts are shown on the photos. No handwritten answers. Excel formulas preferred. W E15-21 (similar to) Question Help
Please read all requirements, as not all parts are shown on the photos. No handwritten answers. Excel formulas preferred.
W E15-21 (similar to) Question Help E-books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. 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 following data are available for September 2017: (Click the icon to view the data.) Read the requirements. Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intern decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info = Costs incurred Allocation of HR costs Allocation of Info. System costs Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 80,000 $ 260,000 $ 960,000 $ 515,000 $ 1,815,000 (80,000) 48,000 32,000 (260,000) 139,785 120,215 $ 0 $ 0 $ 1,147,785 $ 667 215 $ 1,815,000 Total budgeted costs of operating departments Requirement 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places.) Support department Human Resources Percentage 20.00000 % 7.00000 % Information Systems Next, use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minu allocating costs. Enter a "" for any zero balances.) Support Departments HR Info. Systems Operating Departments Corporate Consumer Total Costs incurred Total budgeted costs of operating departments i Data Table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 80,000 $ 260,000 $ 960,000 $ 515,000 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) 20 48 32 280 - 2,000 1,720 Print Done Requirements 1. Allocate the support departments' costs to the operating departments using the direct method. 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. 3. How could you have ranked the support departments differently? Print DoneStep by Step Solution
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