E- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support...

   

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E- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operation independently. E- 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 2017: E (Click the icon to view the data.) Read the requirements. 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 24 72,700 $ 234,400 $ 998,270 $ 489,860 $ 1,795,230 Allocation of HR costs (72,700) 43,620 29,080 Allocation of Info. System costs (234,400) 127,855 106,545 2$ Total budgeted costs of operating departments 0 $ 1,169,745 $ 625,485 $ 1,795,230 Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment cost allocations $ 72,700 $ 234,400 2$ 998,270 $ 489,860 Support work supplied by human resources department Budgeted number of employees 21 42 28 Support work supplied by information systems department Budgeted processing time (in minutes) 320 1,920 1,600 | Requirement 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. First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places.) Support department Percentage % % Choose from any list or enter any number in the input fields and then click Check Answer. E- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operation independently. E- 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 2017: E (Click the icon to view the data.) Read the requirements. 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 24 72,700 $ 234,400 $ 998,270 $ 489,860 $ 1,795,230 Allocation of HR costs (72,700) 43,620 29,080 Allocation of Info. System costs (234,400) 127,855 106,545 2$ Total budgeted costs of operating departments 0 $ 1,169,745 $ 625,485 $ 1,795,230 Support Departments Operating Departments Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment cost allocations $ 72,700 $ 234,400 2$ 998,270 $ 489,860 Support work supplied by human resources department Budgeted number of employees 21 42 28 Support work supplied by information systems department Budgeted processing time (in minutes) 320 1,920 1,600 | Requirement 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. First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places.) Support department Percentage % % Choose from any list or enter any number in the input fields and then click Check Answer.

Answer rating: 100% (QA)

Rank Step 1 HR Provides service to Information System 21214228 2307692 I Step 2 Inf... View the full answer