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HomePage LayoutFormulasDataReviewViewSUPPORTOPERATINGASISGOVTCORPTotalBudgeted overhead costs before anyinterdepartment cost allocations$ 6 0 0 , 0 0 0 $ 2 , 4 0 0 , 0 0 0

HomePage LayoutFormulasDataReviewViewSUPPORTOPERATINGASISGOVTCORPTotalBudgeted overhead costs before anyinterdepartment cost allocations$600,000$2,400,000$8,756,000$12,452,000$24,208,000Support work supplied by AS (budgeted head count)25%40%35%100%Support work supplied by IS (budgeted computer time)10%30%60%100%Copyright 2015 Pearson Education, Inc.Required:1. Allocate the two support departments' costs to the two operating departments using the following methods:a. Direct method b.Step-down method (allocate AS first)c. Step-down method (allocate IS first)

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