Partners provides management consulting services to government and corporate clients. Austin has two support departmentsadministrative services (AS) and information systems (IS)and two operating departmentsgovernment consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Austin's

E15-20 (similar to) Question Help Austin Partners provides management consulting services to government and corporate clients. Austin 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, Austin's cost records indicate the following: (Click the icon to view the cost records.) The two support departments' costs have been allocated to the two operating departments using the direct method and the step-down method (AS department first) and the step-down method (IS department first). The results of the allocations are as follows: 2 (Click the icon to view the direct method.) (Click the icon to view the step-down method (AS first).) 3 (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Requirements First, determine the linear equations for each support department. AS 1. ISE 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? 2. Data Table Print Done SUPPORT OPERATING AS IS GOVT CORP Total $ 300,000 $ 3,000,000 $ 8,725,000 $ 12,470,000 $ 24,495,000 Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 25% 45% 30% 100% 10% 0 27% 63% 100% Choose from any drop-down list and then click Che ? parts remaining Print Done Check Answer Score: 0 of 1 pt 3 of 6 (0 complete) HW Score: 0%, 0 of 6 pts E15-20 (similar to) A Question Help The two support departments' costs have been allocated to the two operating departments using the direct method and the otan dawn mothed AS donactment first and the con down mothad (dagartment first). The results of the Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments administrative services (AS) and information custome (18)__and trio onoratina departments-government consulting (GOVT) cost records indicate the following: Direct method (Click the icon to view the cost records.) Read the requirements Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Requirement 1a. Allocate the two support depa Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 First, determine the linear equations for each su Allocation of AS costs AS=1 300,000 $ 3,000,000 $ 8,725,000 $ (300,000) 180,000 (3,000,000) 900,000 0 $ 0 $ 9,805,000 $ 120,000 2,100,000 Allocation of IS costs $ 14,690,000 $ 24,495,000 IS= Total budgeted overhead of operating departments Print Dans Reference GOVT CORP Direct method $ 1,080,000 $ 2,220,000 1,057,500 Step-down (AS first) Step-down (IS first) 2,242,500 2,130,000 1,170,000 Choose from any drop-down list and then click Check Answer. ? Print Done parts remaining Check Answer Score: 0 of 1 pt 3 of 6 (0 complete) HW Score: 0%, 0 of 6 pts E15-20 (similar to) Question Help Step-down method (AS first) operating departments using the direct method and pthod (IS department first). The results of the Austin Partners provides managem departments administrative servid departments-government consulti cost records indicate the following: (Click the icon to view the cost Support Departments Operating Departments AS IS GOVT CORP Total Read the requirements. Step-down Method Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 Allocation of AS costs 90,000 Requirement 1a. Allocate the two 300,000 $ 3,000,000 $ 8,725,000 $ (300,000) 75,000 135,000 0 3,075,000 (3,075,000) 922,500 $ 0 $ 9,782,500 $ First, determine the linear equation Allocation of IS costs 2,152,500 AS= 14,712,500 $ 24,495,000 Total budgeted overhead of operating departments IS i Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 300,000 $ 300,000 3,000,000 $ 8,725,000 $ (3,000,000) 810,000 Allocation of IS costs 1,890,000 0 $ $ 600,000 (600,000) Allocation of AS costs 360,000 240,000 Choose from any drop-down list ? 0 $ 9,895,000 $ 14,600,000 $ 24,495,000 Total budgeted overhead of operating departments parts remaining Check Answer Print Done E15-20 (similar to) Question Help Austin Partners provides management consulting services to government and corporate clients. Austin 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, Austin's cost records indicate the following: (Click the icon to view the cost records.) The two support departments' costs have been allocated to the two operating departments using the direct method and the step-down method (AS department first) and the step-down method (IS department first). The results of the allocations are as follows: 2 (Click the icon to view the direct method.) (Click the icon to view the step-down method (AS first).) 3 (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Requirements First, determine the linear equations for each support department. AS 1. ISE 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? 2. Data Table Print Done SUPPORT OPERATING AS IS GOVT CORP Total $ 300,000 $ 3,000,000 $ 8,725,000 $ 12,470,000 $ 24,495,000 Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 25% 45% 30% 100% 10% 0 27% 63% 100% Choose from any drop-down list and then click Che ? parts remaining Print Done Check Answer Score: 0 of 1 pt 3 of 6 (0 complete) HW Score: 0%, 0 of 6 pts E15-20 (similar to) A Question Help The two support departments' costs have been allocated to the two operating departments using the direct method and the otan dawn mothed AS donactment first and the con down mothad (dagartment first). The results of the Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments administrative services (AS) and information custome (18)__and trio onoratina departments-government consulting (GOVT) cost records indicate the following: Direct method (Click the icon to view the cost records.) Read the requirements Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Requirement 1a. Allocate the two support depa Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 First, determine the linear equations for each su Allocation of AS costs AS=1 300,000 $ 3,000,000 $ 8,725,000 $ (300,000) 180,000 (3,000,000) 900,000 0 $ 0 $ 9,805,000 $ 120,000 2,100,000 Allocation of IS costs $ 14,690,000 $ 24,495,000 IS= Total budgeted overhead of operating departments Print Dans Reference GOVT CORP Direct method $ 1,080,000 $ 2,220,000 1,057,500 Step-down (AS first) Step-down (IS first) 2,242,500 2,130,000 1,170,000 Choose from any drop-down list and then click Check Answer. ? Print Done parts remaining Check Answer Score: 0 of 1 pt 3 of 6 (0 complete) HW Score: 0%, 0 of 6 pts E15-20 (similar to) Question Help Step-down method (AS first) operating departments using the direct method and pthod (IS department first). The results of the Austin Partners provides managem departments administrative servid departments-government consulti cost records indicate the following: (Click the icon to view the cost Support Departments Operating Departments AS IS GOVT CORP Total Read the requirements. Step-down Method Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 Allocation of AS costs 90,000 Requirement 1a. Allocate the two 300,000 $ 3,000,000 $ 8,725,000 $ (300,000) 75,000 135,000 0 3,075,000 (3,075,000) 922,500 $ 0 $ 9,782,500 $ First, determine the linear equation Allocation of IS costs 2,152,500 AS= 14,712,500 $ 24,495,000 Total budgeted overhead of operating departments IS i Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations $ 12,470,000 $ 24,495,000 300,000 $ 300,000 3,000,000 $ 8,725,000 $ (3,000,000) 810,000 Allocation of IS costs 1,890,000 0 $ $ 600,000 (600,000) Allocation of AS costs 360,000 240,000 Choose from any drop-down list ? 0 $ 9,895,000 $ 14,600,000 $ 24,495,000 Total budgeted overhead of operating departments parts remaining Check Answer Print Done