Homework Chapter 16 - Homework Question 3, E16-22 (sin HW con: 43.73, 1740 of 40 pont Point 1.13 10 Save S1000 Ragnant wome They were calcio Nequente por el concordantes the det sistemowe wyou news.com 0-1000 30000 p/cousados com xxxxx Suport Deparments Dowsing Departments HR Interne Carpente Consumer Ta Help me solve this Etext pages Get more help Clear Check answer Dvere to search Read the requirements .. More info Each sales department conducts merchandising and marketing operations independently. E-books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. 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. Print Done Corporate VUNTSUGI TUTO Viva Data table D E 1 B SUPPORT DEPARTMENTS Human Information Resources Systems OPERATING DEPARTMENTS Corporate Consumer Sales Sales 2 S 80 000 $ 229,000 $ 990,000 $ 485.000 Budgeted costs incurred before any 3 interdepartment cost allocations Support work supplied by human 4 resources department 5 Budgeted number of employees Support work supplied by information 6 systems department Budgeted processing time (in 7 minutes) 0 20 48 32 400 0 2,520 1080 Print Done BENCI U 10 view the data (Click the icon to view the direct allocation data) (Click the icon to view the step-down allocation data) rod - X Direct allocation data m ts to S Costs incurred $ Support Departments Operating Departments HR Info. Systems Corporate Consumer Total 80 000 $ 229.000 S 990 000 $ 485 000 $ 1784 000 (80,000) 48.000 32 000 (229,000) 160 300 68.700 OS 0 $ 1,198 300 $ 585,700 S 1,784,000 Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments S all Print Done click the icon to view the direct allocation data Step-down allocation data - X Support Departments Operating Departments HR Info Systems Corporate Consumer Total 80 000 S 229,000 $ 990,000 $ 485,000 $ 1.784 000 (80.000) 16,000 38 400 25 600 Costs incurred S Allocation of HR costs 0 245.000 Allocation of Info Systems costs (245.000) 171,500 73.500 S Total budgeted costs of operating departments 0 $ 1.199,900 $ 584 100 $ 1.784.000 'Proportions for services provided to other support departments human resources (HR). O 20000, information sytems (1S). 0.10000 Print Done Requirements provid ces ar ing de ations 1. Describe the key features of the reciprocal method 2. 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. 3. In the case presented in this exercise, which method (direct, step-down on reciprocal) would you recommend? Why? matid ating Print Done ents