$16-22.$ RECIPROCAL COST ALLOCATION $($CONTINUATION OF $16-$

$.$ Consider E$-$books again. The controller of E$-$books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance.

$672$

Required

Describe the key features of the reciprocal method.

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.