Requirement:

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?

Please show work and calculation:

Toch Eccks, an online bock metaler, has twa operating departments corporate sales and consumor sales and to support departments-human resources and The following data are valable for acptember 2017: , information systems. malick the icon to view the dar) (Cick the icon bo v cw additional Information.) (Click the icon tu vien the direct a location cals. Click the icon to view the step down location data) Read the regulament Requirement 1. Describe the key features of the reciprocal method The reciprocal allocation method cxplicity includes the mutual sendoos provided Interdepartmental relatonships fuly incorporated into the suppot department cost alications. Direct allocation data More info Requirements 3 Cost curred Allocation of HR casta Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90 000 $ 227,000 5 992000 S 489,00 $ 1,792 000 190,000 54.000 96.000 (227.000) 138.200 son O3 1,182.200 S 609,800 $ 1.792.000 Allocation of Inta. Systemaco Total budgeted costs of operating departments Fadas department such macercising and marketing op Independently. Toch Books uses number of employees to allocate human resources onls and processing time alocale normation systems costs. The cawaler al Tech Books made a widely used textbook that started that the reciprocal method is corpusly the most deferable." He socks your assistanc. 1. Describe the key features of the rec procal method. 2. Allocate the support departments' costs human resources and rfurration kykem ta the two operating departments in the reciprocal methods a) linear equations and by repeated berations. 3. In the case presented in this exercise, which method direct step-down, or reciprocal would you recommend? Why? 3 - X Step-down allocation data Data table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 9000CS 227,000 $ 962.000 $ 483,000 Support Departments Operating Departments HR Info Systems Corporate Consumer Tata! Costs incurred E 90,000 S 227,000 $ 9920 483,000 $ 1,792 0cc Allocarion of HR Boats 190.000 ) 18 000 43.200 29,900 S 246,000 Allocation of Into Systems costs 1245,000 147.000 99,000 S Total budgeled cons of operaing departments 0 $ 1,182.2005 609,833 $ 1,792 000 Raportions for services provided to other support cartinents en les (HR), 0.26000 manation apteme (1 6.100 Budgeted wools incurred before any interdepartmental locations Support work supplied by human resources department Baccalad number of employee Support work sulled by information systems department Bucveled processing time in minutes) 48 32 400 2.180 1.440 Tech Becks an online bookesiler has two perang departments-orporale ale and consumer and we suport deze manieran resume and information systems (Click the icon ka viimation The Coloring cats are available for Beplember 2017 Click the icon to view the data) Click the icon to view the direct lation de.) PiCick the icon to view the step down allocation data. Read the roaurerent. Requirement 1. Describe the key features of the reciprocal method. The rec procal allocation method explicidy includes the mutual Serv.ces provided Interdepartmental relationships fully incorporated into the support department cost allocations. among all support departmams tone Human Resource cepatent Direct allocation data to the information Systems department Requirements More info Costs incurred Alocation of HR CONS Alocation of info Systems costs Total budgeted costs of operating departments Support Departments Operating Departments HR Info Systems Corporate Consumer Total $ 90,000 $ 227 CCC S 992000 S 483,000 $ 1,792,000 150,000 54.000 36.CO 36,000 1227,000 138 200 90 800 S08 3 OS OS 1.182 2003 609,800 $ 1,792.000 Each an department conducts merchandising and marketing operatia Independently. Tech Books uses number of employees to allocate human resources costs and processing time to allocale information systems cust. The taler of Tech Baokarab milyond book that all that the reciprocal method is conceptualy the most defenstle." He sooks your assistance. 1. Descnbe the key features of the reciprocal method. 2. Allocate the support departments' costs human resources and information Rystemsla tha maling department using the reciprocal method. I a) linear equations and ibrapated Iterations 3. In the case presented in this exercise which method direct step-dean, ar reciprocall would you recommend? Why? - X Step-down allocation data Data table Support Departments Operating Departments HR Info Systems Corporate Consumer Tots Costs incurred S 90,000 $ 227,000 $2,000 $ 403,000 $ 1,792,000 Allocation of HR costs (90.CCC) 18,090 43,200 20,000 S 0 245.000 Allocation of Info. Systems Boots (245.000 147.CO 99,000 $ Total budgeledels of operating deperiments 0 $ 1.182,200 $ 609,800 $ 1,792,000 Proprio la provind a way of www.wawcAX (HR, 0.29979 in arasi. G.1000 Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales xed lined before any Interdepartment cast alcatons $ 90,000 S 227,000 $ 992,000 $ 483,000 Support work suppled by human resources department Budgeted number of employed 20 45 Support work supied by information systems department Bucgeted processing time in mi 400 2,100 1.440 Tech Books, an online book retailer, has two cperating departments corporate sales and consumer sales and to support departments human resources and information systems (Click the icon to view additional information) The following data are alable for September 2017: Click the loan to view the dista (Click the icon to viw the direcciones) Click the icon to view the step down allocation data) Reed the menta "BITCT Requirement 1. Describe the key features of the reciprocal method. The reciprocal a location method cxplicidy includes the mutual services provided v. tercepartmenral relationships fuly incorporated into the support deparment cost allocations. are - X Direct allocation data Requirements More info $ Canned Allocation of HR costs Allocation of Ino Sym co Toggled.cooperating departs Support Departments Operating Departments HR Info Systems Corporate Consumer Total 90.000 $ 227,000 $ 992000 3 483.000 $ 1.799,000 150,000 54.000 35,000 1227,000) 135.200 90.800 0 $ D$ 1,182.2008 $ Each sales depenent conducts merchandising and marketing operations independently. Tech Books Usos number of employees to alocate human Touca casts and processing time to locate formation to cost. The controller of Tech Books reads a widely used textbook that states that the repromated lay the most defola" He asks your ne 1. Describe the key features of the reciprocal method. 2. Al cale the port departe human OURORA d information wystems to the two operating departments using the reciprocal method. Use la lineer Hussons and (b) repealed iteration 3. In the Cented in the which metod cide-down, or reciprocal) would you recommend? Why? $ 209.00 $ 1.799,000 Step-down allocation data - X Data table Support Departments Operating Departments HR Info Systems Corporate Consumer Total Cats included s 90 000 $ 227 000 $ 900,000 $ 489,000 $ 1,792,000 190.000 18.0CC Allocation of costs 43,200 28,000 S 0 245.000 (243,000 147,000 Allocation of Inu. Systems Cols 80,000 $ Total budgeted costs of operaing departments 0 $ 1.182,200 $ 600,000 $ 1./2.2,000 C$ Proportion for www prawo www com www (HRI, 0 242. wol plame (15). G.TO. Support Departments Operating Departments Human Information Corporate Consumer Resources System B Balis | Budgeted costs incurred before any interdepa marcoal locations $ 90 000 $ 227,000 $ 592,000 S 483,000 Support work supplied by human resources department Budgoed number of employees 20 45 32 Support wurk supplied by informan systema department Budgeted processing time in minutes) 400 2,100 1,440