Houstin Partners provides management consulting services to government and corporate clients.Houstin 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 2012, Houstin's cost records indicate the following:

	SUPPORT			OPERATING
	AS	IS		GOVT	CORP	Total
Budgeted costs incurred before any
interdepartment cost allocations	$690,000	$2,400,000		$8,675,000	$12,550,000	$24,315,000
Support work supplied by AS
(budgeted head count)	---	20%		48%	32%	100%
Budgeted number of
Support work supplied by IS
(budgeted computer time)	10%	---		36%	54%	100%

Requirement 1a. Allocate the two support departments' costs to the two operating departments using the

direct

method. (Do not round interim calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.)

	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 interim calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.)

	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 interim calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.)

	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