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Direct allocation data Step-down allocation data Tech Books, an online book retailer, has two operating divisions-corporate sales and consumer salesand two support divisions-human resources and information systems. Each sales division conducts merchandising and marketing operations independently. Tech Books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of Tech Books reads a widely used textbook that states "the reciprocal method is conceptually the most defensible." He seeks your assistance. The following data are available for September. (Click the icon to view the data.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) department cost allocations. Tully Incorporatea Into tne support Tully Incorporatea into tne support Requirement 2. Allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. Before we can allocate the support divisions' costs to the two operating divisions using the reciprocal method, first determine the linear equations for each support division. Then, solve for HR (human resources) first and then IS (information systems), so that you may complete the allocation of the support divisions' costs. (Round the dollar amounts to the nearest whole dollar. Enter the proportions to five decimal places.) HRIS== Now, allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. (Round percentages to three decimal places, X.XXX%, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing divisions by allocating costs. Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate field.) Required 1. Describe the key features of the reciprocal method. 2. Allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Data Tech Books, an online book retailer, has two operating divisionscorporate sales and consumer salesand two support divisionshuman resources and information systems. Each sales division conducts merchandising and marketing operations independently. Tech Books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The controller of Tech Books reads a widely used textbook that states "the reciprocal method is conceptually the most defensible." He seeks your assistance. The following data are available for September. (Click the icon to view the data.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) 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 fully incorporated into the support department cost allocations. Requirement 2. Allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. Before we can allocate the support divisions' costs to the two operating divisions using the reciprocal method, first determine the linear equations for each support division. Then, solve for HR (human resources) first and then IS (information systems), so that you may complete the allocation of the support divisions' costs. (Round the dollar amounts to the nearest whole dollar. Enter the proportions to five decimal places.) HRIS=$84,000+=$237,000+ Now, allocate the support divisions' costs (human resources and information systems) to the two operating divisions using the reciprocal method. (Round percentages to three decimal places, X.XXX%, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing divisions by allocating costs. Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate field.)