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Question: 3 -books, an online book retailer, has two operating departments, corporate sale onsumer sales-and two support departments-human resources and inform ystems. Each sales department
Question: 3 -books, an online book retailer, has two operating departments, corporate sale onsumer sales-and two support departments-human resources and inform ystems. Each sales department conducts merchandising and marketing opera ndependently. E-books uses number of employees to allocate human resources cost rocessing time to allocate information systems costs. The following data are availab eptember 2012: SUPPORT OPERATING DEPARTMENTS DEPARTMENTS Human Information Corporate Consum Resources Systems Sales Sales $72,700 $234,400 $998,270 $489,88 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Budgeted number of employees Budgeted processing time (in minutes) 21 42 28 320 1,920 1,600 Fequired (10 Marks) 1. Rank the support departments based on the percentage of their services pro to other support departments. Use this ranking to allocate the su departments' costs to the operating departments based on the step- method. 4/5 Question: 3 -books, an online book retailer, has two operating departments, corporate sale onsumer sales-and two support departments-human resources and inform ystems. Each sales department conducts merchandising and marketing opera ndependently. E-books uses number of employees to allocate human resources cost rocessing time to allocate information systems costs. The following data are availab eptember 2012: SUPPORT OPERATING DEPARTMENTS DEPARTMENTS Human Information Corporate Consum Resources Systems Sales Sales $72,700 $234,400 $998,270 $489,88 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Budgeted number of employees Budgeted processing time (in minutes) 21 42 28 320 1,920 1,600 Fequired (10 Marks) 1. Rank the support departments based on the percentage of their services pro to other support departments. Use this ranking to allocate the su departments' costs to the operating departments based on the step- method. 4/5
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