Please do not give image format O-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 operations independentlyO-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 2020:(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 input field to the nearest dollar. Use parentheses or a minus sign when decreasingdepartments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR= Human resources; Info. = Information.)Costs incurredAllocation of HR costsAllocation of Info. System costsTotal budgeted costs of operating departmentsData table12ASupport DepartmentsHRBudgeted costs incurred before any3 interdepartment cost allocationsSupport work supplied by human4 resources department57Budgeted number of employeesSupport work supplied by information6 systems departmentBudgeted processing time (inminutes)Info. SystemsBOperating DepartmentsCorporateConsumerSUPPORTDEPARTMENTSCHuman InformationResources Systems0$ 40,000 $ 240,000 $280200DOPERATINGDEPARTMENTSECorporate ConsumerSalesSales50Total970,000 $ 465,0002,000301,720Requirements1. Allocate the support departments' costs to the operating departments using thedirect method.2. Rank the support departments based on the percentage of their servicesprovided to other support departments. Use this ranking to allocate thesupport departments' costs to the operating departments based onthe step-down method.3. How could you have ranked the support departments differently?Print- XDone

In direct cost allocation, cost are directly allocated from the service department to production…

1 2 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 7 Budgeted processing time (in minutes) B SUPPORT DEPARTMENTS Human Information Resources Systems $ 40,000 $ 0 280 240,000 $ 20 0 D OPERATING DEPARTMENTS Corporate Consumer Sales Sales 970,000 $ 465,000 50 2,000 30 1,720

1 2 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 7 Budgeted processing time (in minutes) B SUPPORT DEPARTMENTS Human Information Resources Systems $ 40,000 $ 0 280 240,000 $ 20 0 D OPERATING DEPARTMENTS Corporate Consumer Sales Sales 970,000 $ 465,000 50 2,000 30 1,720

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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