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ACT 470 - Individual Assignment -15% Question ONE 100 Marks E&Y provides management consulting services to avernment and corporate clients. B&Y has two support departments

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ACT 470 - Individual Assignment -15% Question ONE 100 Marks E&Y provides management consulting services to avernment and corporate clients. B&Y has two support departments administrative services (AS) and information systems (IS) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the second quarter of 2016, E&V's cost records indicate the following Particulars Support AS Support IS Total Operating Govt Operating | Corp $300.000 $750,000 $1,000,000 2.900.000 Interdepartmental cost $850,000 allocations Support work supplied by AS (budgeted head count) 30% 40% 30% 100% 15% 30% 55% 100% Support work supplied by IS (budgeted head count) Required: 1. Allocate the two support departments' costs to the two operating departments using the following methods a. Direct method make b. Step-down method (allocate AS first armunte c. Step-down method (allocate IS first) amato 2. Allocate the two support departments" costs to the two operating departments using the reciprocal method. Use (a) linear equations, casual

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