Current Attempt in Progress As the managing partner of Novak Accounting Services (HAS), Adam is trying to compare the profitability results of the firm's three different business lines: Audit, Tax, and Advisory Services. These three operating divisions are supported by three support departments: Billing, Human Resources, and IT. The cost drivers (or allocation bases) for each of the support departments, along with each department's usage of those services and its own original costs, are as follows. Original cost Billing hours used Number of employees IT hours used Support Departments Billing $66,000 2 100 HR $113,000 $98,000 2 IT 200 1 200 Audit 2,000 $528,000 $811,000 12 Operating Divisions 900 Tax 1,400 15 600 Advisory $315,000 $1,931,000 600

As the managing partner of Novak Accounting Services (HAS). Adam is trying to compare the profitabilityresults of the firmis three different business lines: Audit, Tax, and Advisory Services. These three operating divisions are supported by three suovort departments: Billing. Human Resources, and IT The cost df tvers (or allocation bases) for cach of the wupport departmenta, alone wites each department's usage of those services and its own original costs, are as follows Your answer is correct. Rank the three support departments by their original costs, and then allocate the support department costs using the step method. (Round intermediate colculations to 4 decimal places, eg. 15.2516 and final answers to 2 decimal places, es. 15.25) Your answer is incorrect. Rank the three support departments based on the percentage of their service provided to other support departments, and then allocate their costs using the step method, (Round intermediate calculations to 4 decimal places, es. 15.2516 and final answers to 2 decimal places, eg 15.25.)