Vision Books, an online book retailer, has two operating departmentscorporate The following data are available for September 2017: sales and consumer sales-and two support departments--human resources and Click the icon to view the data.) information systems. (Click the icon to view the direct allocation data.) (Click the icon to view additional information.) (Click the icon to view the step-down allocation data) Read the requirements Requirement 1. Describe the key features of the reciprocal method. The reciprocal allocation method explicitly includes the mutual services provided among all support departments Interdepartmental relationships are fully incorporated into the support department cost allocations. Requirement 2. 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 support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used:HR = human resources; IS = information system.) HR $75,000 + 0.10000 IS IS. $230,000 + 0.20000 HR Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for zero balances.) Enter any number in the edit fields and then click Check Answer. Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method (Round proportions to five decimal places, Xxxxx, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "O" for zero balances.) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Click the icon to view the direct allocation data.) Lantian X Data Table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 75,000 $ 230,000 $ 996,000 $ 481,000 neth Ig de po ci er 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) 60 25 40 - 2,700 675 375 sts yst Print Done tso in the artit fialde and then click Check Answer Direct allocation data X est $ Costs incurred Allocation of HR costs Allocation of Info. Systems costs Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 75,000 $ 230,000 $ 996,000 $ 481,000 $ 1,782,000 (75,000) 45,000 30,000 (230,000) 184,000 46,000 0 $ 0 $ 1,225,000 $ 557,000 $ 1,782,000 $ Total budgeted costs of operating departments $ X te st co! Step-down allocation data urred of HET of in Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $ 75,000 $ 230,000 $ 996,000 $ 481,000 $ 1,782,000 Allocation of HR costs (75,000) 15,000 36,000 24,000 $ 0 245,000 Allocation of Info. Systems costs (245,000) 196.000 49,000 0 $ 1.228,000 $ 554,000 $ 1,782,000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS), 0.10000. geted numit er ning
