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Hudson Partners provides management consulting services to government and corporate clients. Hudson has two support departments administrative services (AS) and information systems (IS)and two

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Hudson Partners provides management consulting services to government and corporate clients. Hudson 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 2020, Hudson's cost records indicate the following: (Click the icon to view the cost records.) Requirements - Data table 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) 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? A B C D E F 1 SUPPORT OPERATING 2 AS IS GOVT CORP Total Budgeted overhead costs before any 3 interdepartment cost allocations $ 600,000 $1,800,000 $ 7,500,000 $ 12,470,000 $22,370,000 Support work supplied by AS 0 25% 45% 30% 100% 10% 0 36% 54% 100% 4 (budgeted head count) Support work supplied by IS 5 (budgeted computer time)

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