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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.

CoursHeroTranscribedText: 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. Human lnforrnation Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment cost allocations $ 80,000 $ 229,000 $ 994,000 $ 483,000 Support work supplied by human resources department Budgeted number of employees 20 48 32 Support work supplied by information systems department Budgeted processing time (in minutes) 400 2,520 1,080 Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Support Departments Operating Departments HR Info. Systems Corporate Consumer Total $ 80,000 $ 229,000 $ 994,000 $ 483,000 $ 1,786,000 (80,000) 48,000 32,000 (229,000) 160,300 68,700 $ 0 $ 0 $ 1,202,300 $ 583,700 $ 1,786,000 Step-down allocation data HR Info. Systems Corporate Consumer Total Costs incurred $ 80,000 $ 229,000 $ 994,000 $ 483,000 $ 1,786,000 Allocation of HR costs (80,000) 16-000 38,400 25,600 H 245,000 Allocation of Info. Systems costs (245'000) 171'500 73'500 Total budgeted costs of operating departments # W W m *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (18), 0.10000

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