E15-20 (book/static) Question Help o 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 departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017. Phoenix's cost records indicate the following: (Click the icon view the cost records.) The two support departments' costs have been allocated to the two operating departments using the direct method and the step-down method (AS department first) and the step-down method (IS department first). The results of the allocations are as follows: (Click the icon to view the direct method.) Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) Read the requirements IS= $2,400,000 + 0.25 AS Now allocate the support departments' costs (AS and department costs that you determined in the prior step) to the two operating departments using the reciprocal method. (Round decimal calculations to three decimal places, .XXX, and 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 AS IS GOVT CORP Total Reciprocal Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments Enter any number in the edit fields and then click Check Answer. ? X i Direct method Support Departments Operating Departments Direct Method AS IS GOVT CORP Total imal c Inces.) Budgeted overhead costs before interdepartment cost allocations $ Allocation of AS costs 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 (600,000) 320,000 280,000 (2,400,000) 800,000 1,600,000 Allocation of IS costs $ 0 $ 0 $ 9,876,000 $ 14,332,000 $ 24,208,000 Total budgeted overhead of operating departments Print Done i Step-down method (AS first) X Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 (600,000) 150,000 240,000 210,000 Allocation of AS costs 2,550,000 (2,550,000) Allocation of IS costs 850,000 1,700,000 $ 0 $ 9,846,000 $ 14,362,000 $ 24,208,000 Total budgeted overhead of operating departments Print Done i Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations $ Allocation of IS costs 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 240,000 (2,400,000) 720,000 1,440,000 $ 0 840,000 (840,000) 448,000 392,000 Allocation of AS costs $ 0 $ 9,924,000 $ 14,284,000 $ 24,208,000 Total budgeted overhead of operating departments i X Reference GOVT CORP Direct method 1,120,000 $ 1,880,000 1,090,000 1,910,000 Step-down (AS first) Step-down (IS first) 1,168,000 1,832,000