Vision Books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. (Click the icon to view additional information.) The following data are available for September 2017: Click the loon to view the data.) (Click the icon to view the direct allocation data.) (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= $90,000 0.10000 IS IS $227,000 + 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 "O" for zero balances.) Support Deparments HR Info. Systems Operating Departments Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of info. Systems costs Total budgeted costs of operating departments Enter any number in the edit fields and then click Check Answer. E15-22 (similar to) Question Help Step-down allocation data i More Info 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 controller of Vision Books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistant Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 90,000 $ 227.000 $ 995,000 $ 485,000 $ 1.797,000 (90,000) 18.000 Allocation of HR costs 43,200 28,800 $ 0 245.000 (245,000 147,000 98.000 Allocation of Info. Systems costs $ 0 $ 1,185,200 $ 611,800 $ 1,797.000 Total budgeted costs of operating departments *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS). 0.10000 cations. Print Done IS (Information Syster Data Table Print Done Support Departments Human Information Resources Systems Operating Corporate Consumer Sales Sales Direct allocation data bre S 90,000 $ 227,000 $ 995,000 $ 485,000 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) 20 32 Costs incurred $ Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 90,000 $ 227,000 S 995,000 S 485,000 $ 1,797,000 (90,000) 54,000 36,000 (227,000) 136,200 90,800 400 2,160 1,440 Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments $ 0 $ OS 1,185,200 S 611,800 $ 1,797,000 Print Done Print Done Vision Books, an online book retailer, has two operating departmentscorporate sales and consumer salesand two support departmentshuman resources and information systems. (Click the icon to view additional information.) The following data are available for September 2017: Click the loon to view the data.) (Click the icon to view the direct allocation data.) (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= $90,000 0.10000 IS IS $227,000 + 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 "O" for zero balances.) Support Deparments HR Info. Systems Operating Departments Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of info. Systems costs Total budgeted costs of operating departments Enter any number in the edit fields and then click Check Answer. E15-22 (similar to) Question Help Step-down allocation data i More Info 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 controller of Vision Books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistant Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 90,000 $ 227.000 $ 995,000 $ 485,000 $ 1.797,000 (90,000) 18.000 Allocation of HR costs 43,200 28,800 $ 0 245.000 (245,000 147,000 98.000 Allocation of Info. Systems costs $ 0 $ 1,185,200 $ 611,800 $ 1,797.000 Total budgeted costs of operating departments *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS). 0.10000 cations. Print Done IS (Information Syster Data Table Print Done Support Departments Human Information Resources Systems Operating Corporate Consumer Sales Sales Direct allocation data bre S 90,000 $ 227,000 $ 995,000 $ 485,000 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) 20 32 Costs incurred $ Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 90,000 $ 227,000 S 995,000 S 485,000 $ 1,797,000 (90,000) 54,000 36,000 (227,000) 136,200 90,800 400 2,160 1,440 Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments $ 0 $ OS 1,185,200 S 611,800 $ 1,797,000 Print Done Print Done