Best Books, an online book retailer, has two operating departments-corporate sales and consumer sales and...

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Best 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. Best 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 doiar. Use parentheses or a minus sign when decreasing departments by allocating costs Enter a "O" for any zero balances Abbreviations used:HR - Human resources: Info. - Information) Support Departments Operating Departments Info Systems Corporate Consumer Total Costs incurred Allocation of HR costs Allocation of Info System costs Total budgeted costs of operating departments HR - Data Table Support Departments Human Information Resources Systems Operating Departments Corporate Consumer Sales Sales $ 20,000 $ 220,000 $ 970,000 $ 505,000 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 48 32 360 1 2,250 1,890 Requirement 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. First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places) Support department Percentage % % Next, use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. (Do not round intermediary calculation and round your final answers to the rearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a *o* for any zero balances.) Support Departments Operating Departments Info Systems Corporate Consumer Total Costs incurred HR Total budgeted costs of operating departments Requirement 3. How could you have ranked the support departments differently? You can rank Best Books' support departments using an alternative approach-ranking based on the Using the step-down method, this approach would result in the following sequence: Step 1: Step 2

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