Manhattan Partners provides management consulting Services to government and corporate clients Manhattan has two support departments administrative services (AS) and information systems (15) and two operating departments government consulting (GOT) and corporate consulting (CORP) For the first quarter of 2017. Manhattan's cost records indicate the following 11. Click the icon to view the cost records) The two support department costs have been allocated to the two operating departments in the direct method and the p-down method (AS department and the step-down methods afin The rest of the allocations are as follows C heloon to view the direct method.) C e con to view the step-down methods Click the icon to view the step down method (IS ) B lok the icon to view a Suary of the three methods Read the requirements method Requirements. Alocate the support departments the two operating departments using the co First determine the rear equations for each support department 1600.000 0.10 15 $3,000,000 020 AS wa n ces) s Now locate the port departments' costs AS and department costs that you determined in the prior to the two pewing departments using the reciprocal method and decimal placesXIX, and your final answers to the nearest whole dollar Use parents or a minus when an depan by cong costs for any co Support Departments Operating Departments Total GOVT CORP Reciprocal Method Budgeted overhead costs before interdepartment cost locations Allocation of AS costs Enter any number in the edit fields and then click Check Answer Manhattan Partners provides management consulting services to government and corporate clients Manhattan 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 2017, Manhattan's cost records indicate the following (Click the icon to view the cost records) Question Help 0 The two support department costs have been cated to the two operating departs ng thered method and the shep-down method (AS department first and the down the department The results of the allocations are as follows: Click the icon to view the direct method.) Click the icon to view the step-down method (AS ) Click the icon to view the step down method (15 ) Click the icon to view a summary of the three methods) Read the requirements First, determine the linear equations for each support department AS $660,000 + 0.10 IS IS. $3,900,000 + 0.20 AS Now allocate the support departments' costs (AS and is department costs that you determined in the prior step) to the two operating departments using the reciprocal method (Round decimal calculations to three decimal places, XXX, and your final answers to the nearest whole dollar Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a d'for any zero balances) Support Departments Operating Departments Reciprocal Method IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of Is costs Total budgeted overhead of operating departments T u le icon to view the step-down method (AS first).) i Data Table for ea SUPPORT OPERATING GOVT CORP AS Total $ ats' cos al answ 660,000 $ 3,900,000 $8,850,000 $ 12,420,000 $ 25,830,000 Round decimal calculation y zero balances.) Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 20% 48% 32% 100% 10% 27% 63% 100% locations Print Done ating departments o yuvernment consulting (GOVT) and corporate consulting (CORP). Manhattan's cost records indicate the following: the cost records.) u operating depart Heuod and the step-down method (AS department first) and the step-down method The results of the allocations are as follows: (Click the icon to view the direct method.) Direct method n to view the step-down method (AS first).) Direct method equa Support Departments Operating Departments GOVT CORP Direct Method AS Total depar d your Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs imal cald Inces.) 660,000 $ 3,900,000 $ 8,850,000 $ (660,000) 396,000 (3,900,000) 1,170,000 0 $ 10,416,000 $ 12,420,000 $ 25,830,000 264,000 2,730,000 15,414,000 $ 25,830,000 Total budgeted overhead of operating departments ent cost Done ud of operating departments se edit fields and then click Check Answer. Check Ar Juice and corporate clients. ents administrative services (AS) and information systems partments government consulting (GOVT) and corporate Consulting (CORP). Manhattan's cost records indicate the following: the cost records.) The two support departments' costs have been allocated to the two operating departments using method and the step-down method (AS department first and the step down method 15 depar The results of the allocations are as follows: (Click the icon to view the direct method.) 0 Step-down method (AS first) Step-down method (AS first) qua Support Departments Operating Departments GOVT CORP IS Total Step-down Method Budgeted overhead costs before interdepartment cost allocations epal your 660,000 $ (660,000) 3,900,000 $ 8,850,000 $ 132,000 316,800 12,420,000 $ 25,830,000 211.200 imal calculations to Allocation of AS costs Allocation of IS costs 4,032,000 (4,032,000) 1,209,600 0 $ 10,376,400 $ 2,822,400 15,453,600 $ 25,830,000 Total budgeted overhead of operating departments t cost Print Done of operating departments ve Services (AS) and information systems partments-government consulting (GOVT) and corporate consulting (CORP). Manhattan's cost records indicate the following: the cost records.) support departments costs have been allocated to the two operating departments method and the step-down method (AS department first) and the step down method (1S dupar The results of the allocations are as follows: (Click the icon to view the direct method.) Step-down method (IS first) qua Support Departments AS IS Operating Departments GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations depar your 660,000 $ 390,000 3,900,000 $ 8,850,000 $ (3,900,000) 1,053,000 12,420,000 $ 25,830,000 2,457,000 mal calculations ncos) Allocation of IS costs $ 1,050,000 (1,050,000) Allocation of AS costs 630,000 $ 10,533,000 $ 420,000 15,297,000 $ 25,830,000 0 Total budgeted overhead of operating departments nt cosi Print Done of operating departments Check Answer edit fields and then click Check Answer. (Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) Click the icon to view a summary of the three methods.) ions for each support departe 0.10 IS Reference 0.20 AS tments' costs (AS and IS depa final answers to the nearest w Direct method Step-down (AS first) Step-down (IS first) GOVT 1,566,000 $ 1,526,400 1,683,000 CORP 2,994,000 3,033,600 2,877,000 reciprocal method. (R s. Enter a "0" for any Su Print Done st allocations perating departments Wiol Check Answer . Prowie step-down method (IS first).) (Click the icon to view a summary of the three methods Requirements X 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equation and (b) repeated iterations. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why? reciprocal meth s. Enter a "0" for Print Done