Manhanan Partners provides management consulting services to government and corporate clients Manhattan has to suppor deponments adminstrative services (AS) and information systems (5)-and two operating departments-government consulting (GOVT) and corporate consulting (COP) For the first oner of 2017, Manhatar's corecards indicate the w Dick the can to view the cost records Read the t Data table Requireme decrease Direct Met before i Alication Alocations Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by 15 (budgeted computer time) SUPPORT OPERATING AS GOVT CORP Total $ 000 $ 1.000.000 s.700.000 12.540.000 23.400.000 0 30% 1006 10% 27% 100% Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round you decreasing departments by allocating costs. Enter a "0" for any zero balances.) Operating Departments Support Departments AS IS GOVT CORP Total Direct Method 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 inter a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Step-down Method Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Support Departments Operating Departments AS IS GOVT CORP Total Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Step-down Method Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Support Departments Operating Departments AS IS GOVT CORP Total Requirement 2. Compare and explain differences in the suppon-department costs located to each operating department Begin fy erring the tonal support department costs allocated to each operating department under each of the methods below Drect method GOVT CORP Sp-down (AS Sep-down 05 Br The direct method The step down method There is a disproportionate unage of 15 senices by com then when AS ces are CORP Siwy GOVTS inage of the group exceeds CORPS Therefore, when AS costs are alocated second retse Requirement 3. What approaches might be used to decide the sequence in which to allocate support pets when uning the sp-down method? of a box is not used these leave the box empty b The appaches that could determine the sequence in the step-down method