Vision 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. Vision 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 2013?:

Support Departments

Operating Departments

Human

Information

Corporate

Consumer

Resources

Systems

Sales

Sales

Budgeted costs incurred before any

interdepartment cost allocations

$60,000

$220,000

$980,000

$470,000

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)

360

2,250

1,890

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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?

Requirement 1. Allocate the support? departments' costs to the operating departments using the direct method. ?(Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a? "0" for any zero balances. Abbreviations? used: HR? = Human? resources; Info.? = Information.)

	Support Departments		Operating Departments
	HR	Info. Systems	Corporate	Consumer	Total
Costs incurred
Allocation of HR costs
Allocation of Info. System costs
Total budgeted costs of operating departments