E-books, an online book retailer, has two operating departments—corporate sales and consumer sales—and two support depar

[answerhappygod]

E Books An Online Book Retailer Has Two Operating Departments Corporate Sales And Consumer Sales And Two Support Depar 1 (159.24 KiB) Viewed 71 times

Please show work and calculation:
Requirements:
1.
Allocate the support departments' costs to the operating
departments using the direct method.
2.
Rank the support departments based on the percentage of their
services provided to other support departments. Use this ranking to
allocate the support departments' costs to the operating
departments based on the step-down method.
3.
How could you have ranked the support departments
differently?
E-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 independently. E-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: B Click the icon to view the data.) Read the requirements. IO 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.) Support Departments HR Info. Systems Operating Departments Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info. System costs Total budgeted costs of operating departments - X Data table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 40,000 $ 220,000 $ 980,000 $ 510,000 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department Budgeted number of employees Support work supplied by information systems department Budgeted processing time in minutes) 20 44 36 210 - 1,750 1,540