Please do not give image format 1-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 merchandisingand marketing operations independently. I-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 2017:(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 cell to the nearest dollar. Useparentheses or a minus sign when decreasing departments 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 departmentsesData tableBudgeted costs incurred before anyinterdepartment cost allocationsSupport DepartmentsHRSupport work supplied by human resourcesdepartmentBudgeted number of employeesSupport work supplied by informationsystems departmentBudgeted processing time (in minutes)Info. Systems$Support DepartmentsHumanResources60,000 $360Operating DepartmentsCorporateConsumerInformationSystemsOperating DepartmentsCorporate ConsumerSalesSales320,000 $20960,000 $500,000442,000361,640Total- XRequirements1. 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?PrintDoneClear allXCheck answer

The direct method of cost allocation works by simply splitting up the cost of the overhead from…

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 cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.)

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 cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.)

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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