Houstin Partners provides management consulting services to government and corporate clients. Houstin has two support departmentsadministrative services (AS) and information systems (15)and two operating departmentsgovernment consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Houstin's cost records indicate the following: Requirements Data Table SUPPORT OPERATING AS IS GOVT CORP Total a. b. $ 690,000 $ 3,000,000 $ 7,325,000 $ 12,470,000 $ 23,485,000 1. Allocate the two support departments' costs to the two operating departments using the following methods Direct method Step-down method (Allocate AS first) c. Step-down method (Allocate IS first) 2. Compare and explain differences in the support-department costs allocated to each operating department 3. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 20% 48% 32% 100% 10% 0 36% 54% 100% Print Done Print Done