Manhattan Partners provides management consulting services to government and corporate cilents. Manhattan has two support the following:

$($Click the icon to view the cost records.$)$

Read the requirements sign when decreasing departments by allocating costs. Enter a $"$O$"$ for any zero balances.$)$

Direct Method

Budgeted overhead costs

before interdepartment cost allocations

Alocation of AS costs

Alocation of IS costs

Total budgeted overhead of operating departments

Data table

Requirements

Allocate the two support departments' costs to the two operating departments using the following methods:

a$.$ Direct method

b$.$ Step$-$down mothod $($Allocate AS first$)$

c$.$ Step$-$down method $($Alocate IS first$)$

Compare and explain differences in the support$-$department costs allocated to each operating department.

What approaches might be used to decide the sequence in which to allocate support departments when using the step$-$down method?

$\backslash$table$[[,$A$,,$B$,$c$,$D$,$E$,$F$],[1,,$SUPPORT,OPERATING,$],[2,,,$As $.,$is$,$GOVT,CORP,Total$],[3,\backslash$table$[[$Budgeted overhead costs before any$],[$interdepartment cost allocations$]],$$$,300,000,$$$1,800,000,$$ $8,750,000,$$ $12,470,000,$$$23,320,000$