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Help with 1a and 1b please Houstin Partners provides management consulting services to government and corporate clients. Houstin has two support departments administrative services (AS)
Help with 1a and 1b please
Houstin Partners provides management consulting services to government and corporate clients. Houstin has two support departments administrative services (AS) and information systems (15)and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Houstin's cost records indicate the following: : (Click the icon to view the cost records.) Data table Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and rd "0" for any zero balances.) Support Departments Operating Departments B D E F Direct Method AS IS GOVT CORP Total 1 SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs $ 390,000 $ 1,200,000 $ 8,675,000 $ 12,580,000 $ 22,845,000 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) Allocation of IS costs 0 20% 48% 32% 100% Total budgeted overhead of operating departments 10% 0 27% 63% 100% Print Done Requirement 1b. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate AS first). (Do not round intermed 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 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.)Step by Step Solution
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