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requirement: 1. allocate the supports department cost ( human resources and information system) to the two operating departments using the reciporal method. Data table -

requirement:
1. allocate the supports department cost ( human resources and information system) to the two operating departments using the reciporal method. image text in transcribed
image text in transcribed
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Data table - X Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment cost allocations $ 65,000 $ 225,000 $ 965,000 $ 480,000 Support work supplied by human resources department Budgeted number of employees 20 48 32 Support work supplied by information systems department Budgeted processing time (in minutes) 400 2,500 2,100 Print Done Step-down allocation data Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $ 65,000 $ 225,000 $ 965,000 $ 480,000 $ 1,735,000 Allocation of HR costs (65,000) 13,000 31,200 20,800 $ 0 238,000 Allocation of Info Systems costs (238,000) 129,348 108,652 Total budgeted costs of operating departments $ 0 $ 1,125,548 609,452 $ 1,735,000 *Proportions for services provided to other support departments: human resources (HR), 0.20000, information sytems (15) 0.08000 Print Done Direct allocation data Costs incurred Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments Support Departments Operating Departments HR Info. Systems Corporate Consumer Total $ 65,000 $ 225,000 $ 965,000 $ 480.000 $ 1,735,000 (65,000) 39,000 26.000 (225,000) 122,283 102,717 $ 0$ 0 $ 1,126,283 $ 608,717 $ 1,735,000 Requirement 1. 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 so that you may complete the allocation of the support departments' costs. (Abbreviations used:HR = human resources; IS - information system) HRE IS Now allocate the support departments costs (human resources and information systems) to the two operating departments using the reciprocal method (Round proport whole dollar. Une parentheses or a minus sign when decreasing departments by allocating costs. Enter a o for zoro balances) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Into Systems costs Total budgeted costs of operating departments

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