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Budgeted overhead costs before interdepartment cost allocations 5 300.000 $1,500,000 $ 7,350,000 $ 12.420,000 $21,570,000 Allocation of AS costs (300.000) 180,000 120,000 Allocation of costs
Budgeted overhead costs before interdepartment cost allocations 5 300.000 $1,500,000 $ 7,350,000 $ 12.420,000 $21,570,000 Allocation of AS costs (300.000) 180,000 120,000 Allocation of costs (1.500.000 600.000 900 000 Total budgeted ovestead of operating departments 0 5 130 000 5 13.440.000 521570.000 Requirement 1b. Allocate the two support departments costs to the two operating departments using the stop down method (Allocato AS first). (Do not round intermediary calculations parentheses or a mission when decreasing departments by allocating costs Entera or for any zero balances) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations 300000 1500000 7350000 124200000 21570000 Allocation of AS costs (300000) 30307500 3726000 0 (1500000) Allocation of costs Total budgeted overhead of operating departments B D E 1 SUPPORT OPERATING AS IS GOVT CORP Total $ 300,000 $ 1,500,000 $ 7,350,000 $ 12.420,000 $ 21,570,000 2 Budgeted overhead costs before any 3 interdepartment cost allocations Support work supplied by AS 4 (budgeted head count) Support work supplied by IS 5 (budgeted computer time) Inal ans 0 25% 45% 30% 100% 10% 0 36% 54% 100%
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