Bookworm.com, 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 independently. The company uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2022: 1 Home Insert Page Layout A 2 4 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department 5 6 Budgeted number of employees Support work supplied by information 7 systems department 8 Budgeted processing time (in minutes) Formulas Data Review B C SUPPORT DEPARTMENTS Human Information Resources Systems $72,700 320 View E 21 OPERATING DEPARTMENTS F Corporate Consumer Sales Sales $234,400 $998,270 $489,860 42 1,920 28 1,600 1.Allocate the support departments costs to the operating departments using the direct method. 2. Allocate the support departments' costs to the operating departments based on the step-down method (Start with Information systems department).

Bookworm.com, 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 independently. The company uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2022: 1 Home Insert Page Layout A 2 4 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department 5 6 Budgeted number of employees Support work supplied by information 7 systems department 8 Budgeted processing time (in minutes) Formulas Data Review B C SUPPORT DEPARTMENTS Human Information Resources Systems $72,700 320 View E 21 OPERATING DEPARTMENTS F Corporate Consumer Sales Sales $234,400 $998,270 $489,860 42 1,920 28 1,600 1.Allocate the support departments costs to the operating departments using the direct method. 2. Allocate the support departments' costs to the operating departments based on the step-down method (Start with Information systems department).

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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