Data Table SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 330,000 S 1,200,000 S 8,725,000 $ 12,450,000 22,705,000 100% 20% 52% 28% 10% 100% 63% 27% Requirements 1. Aiocate thetwo spepartments'te wo operating departments using the following methods: a. Direct method b. Step-down method (Allocate AS first) c. Step-down method (Allocate IS first) Compare and explain differences in the support-department costs allocated to each operating department. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? 2. 3. Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments -administrative services (AS) and information systems (IS and two operating departmentsgovernment consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (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 Direct Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments Requirement 1b. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate AS 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 "o" for any zero balances.) Support Departments Operating Departments AS Total Step-down Method Budgeted overhead costs IS CORP GOVT before interdepartment cost allocations 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.) Operating Departments Support Departments Step-down Method Budgeted overhead costs AS IS GOVT CORP Total before interdepartment cost allocations Total budgeted overhead of operating departments