Direct and step-down allocation. 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: Page Layout Data Home Insert Formulas Review View в SUPPORT ID OPERATING DEPARTMENTS DEPARTMENTS Corporate Consumer Sales Sales Human Information Resources Systems 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human 5 resources department Budgeted number of employees Support work supplied by information 7 systems department Budgeted processing time (in minutes) $72,700 $234,400 $998,270 $489,860 4 21 42 28 8. 320 1,920 1,600
Direct and step-down allocation. 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: Page Layout Data Home Insert Formulas Review View в SUPPORT ID OPERATING DEPARTMENTS DEPARTMENTS Corporate Consumer Sales Sales Human Information Resources Systems 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human 5 resources department Budgeted number of employees Support work supplied by information 7 systems department Budgeted processing time (in minutes) $72,700 $234,400 $998,270 $489,860 4 21 42 28 8. 320 1,920 1,600
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...
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Question
Allocate the support departments’ costs to the operating departments using the direct method
![Direct and step-down allocation. 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:
Page Layout
Data
Home
Insert
Formulas
Review
View
в
SUPPORT
ID
OPERATING
DEPARTMENTS
DEPARTMENTS
Corporate Consumer
Sales
Sales
Human
Information
Resources Systems
3 Budgeted costs incurred before any
interdepartment cost allocations
Support work supplied by human
5 resources department
Budgeted number of employees
Support work supplied by information
7 systems department
Budgeted processing time (in minutes)
$72,700
$234,400
$998,270 $489,860
4
21
42
28
8.
320
1,920
1,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf6c3b07-a233-4ae2-bb19-1e99ae47a334%2Fae9b30d5-c8ad-483c-90a3-d6f367e2396d%2Flg54lxd.jpeg&w=3840&q=75)
Transcribed Image Text:Direct and step-down allocation. 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:
Page Layout
Data
Home
Insert
Formulas
Review
View
в
SUPPORT
ID
OPERATING
DEPARTMENTS
DEPARTMENTS
Corporate Consumer
Sales
Sales
Human
Information
Resources Systems
3 Budgeted costs incurred before any
interdepartment cost allocations
Support work supplied by human
5 resources department
Budgeted number of employees
Support work supplied by information
7 systems department
Budgeted processing time (in minutes)
$72,700
$234,400
$998,270 $489,860
4
21
42
28
8.
320
1,920
1,600
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