ACT 470 - Individual Assignment -15% Question ONE 100 Marks Apex provides management consulting services to government and corporate clients. Apex 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 2014, Apex's cost records indicate the following: Particulars Total Support AS Support IS Operating Govt Operating Corp $500,000 $200,000 $200,000 1,400,000 Interdepartmental cost $500,000 allocations Support work supplied by AS (budgeted head count) 25% 50% 25% 100% 20% 30% 50 % 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 (Smarks) b. Step-down method (allocate AS first) (2 marks) c. Step-down method (allocate IS first) (Smarks) 2. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equations. (25marks)