Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Austin Partners provides management consulting services to government and corporate clients. Austin has two support departmentsadministrative services (AS) and information systems (IS)and two operating departments-government
Austin Partners provides management consulting services to government and corporate clients. Austin has two support departmentsadministrative services (AS) and information systems (IS)and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Austin's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements Allocation of IS costs (1,720,000) 688,000 1,032.000 0 $ 9,575,200 $ 13,646,800 $23,380,000 Total budgeted overhead of operating departments Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of IS costs 8,700,000 12,490,000 23,380,000 390,000 180000 1,800,000 (1,800,000) 648000 972000 0 570000 Allocation of AS costs (570000) 273600 182400 9621600 13644400 23,380,000 Total budgeted overhead of operating departments Choose from any list or enter any number in the input fields and then click Check Answer. Data Table SUPPORT OPERATING AS IS GOVT CORP Total $ 390,000 $ 1,800,000 $ 8,700,000 $ 12,490,000 $ 23,380,000 Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 20% 48% 32% 100% 10% 36% 54% 100% Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started