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Phoenix Partners provides management consulting services to government and corporate clients. Phoenix 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 $"0"$ for any zero balances.$)$

$\backslash$table$[[$Direct Method,Support Departments,Operating Departments,Total$],[$AS$,$IS$,$GOVT,CORP$],[$Budgeted overhead costs$],[$before interdepartment cost allocations,$690000,1800000,8825000,12540000,23855000],[$Allocation of AS costs$],[$Allocation of IS costs,$1,,,,],[$Total budgeted overhead of operating departments,,,,,$]]$

Data table

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Requirements

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

a$.$ Direct method

b$.$ Step$-$down method $($Alocate 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?