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

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Hudson Partners provides management consulting services to government and corporate clients, Hudson has to support departments administrative services (AS) and information systems (S) and two operating departments government consulting (OOVT) and corporate consulting (CORP) For the first quarter of 2017, Hudson's cost records indicate the following (Click the icon to view the cost records) Read the requirements medications and round your final answers to the nearest whole dolar. Use parentheses or a Requirement 1a. Allocate the two support department costs to the two operating departments using the direct method. Do not found minus sign when decreasing departments by allowing costs Enter a '0" for any zero balances) Support Department 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 operwing departments Lo government and corporate clients. Hudson has two support systems (IS) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the firs * Data Table SUPPORT IS OPERATING GOVT CORP AS Total Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 690,000 $ 2,400,000 $ 7,500,000 $ 12,470,000 $ 23,060,000 25% 30% 100% 10% 0 27% 63% 100% Print Done k Check Answer Clear All JIK 3 of 5 (4 complete) ind corporate clients. Hudson has two support und two operating departments-government consulting (GOVT) and corporate consulting (COR 0 Requirements 1. Allocate the two support departments' costs to the two operatia 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? Print Done Clear All

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