80.2K

Verified Solution

Link Copied!

Task 4 Human E-books, an online book retailer, has two operating departments-corporate sales and consumer sales and two support departments--human resources and information systems. Eacle sales department conducts merchandising and marketing operations independently. E-books uses number of employer to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2021: SUPPORT DEPARTMENTS OPERATING DEPARTMENTS Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any interdepartment est allocations 72.500S 225 200 $ 9945.720 s Support work supplied by HR department Budgeted number of employees 31 Support work supplied by IS department Budgeted processing time in minutes) 530 380 S 499,680 28 1. Allocate the support departments' costs to the operating departments using (a) direct method, (b) the step-down method (allocate IS first), and fo) reciprocal method (using linear equations). Round your answers to the nearest whole number. 2. Define "support department" and operation department in your own words. 3. What is the main difference between the two methods used for allocating costs to support departments: single rate and dual rate? 4. How do you understand the concept of practical capacity

Answer & Explanation Solved by verified expert

See Answer