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Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems (IS) and two operating

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Phoenix Partners provides management consulting services to government and corporate clients. Phoenix 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, Phoenix's cost records indicate the following: !! (Click the icon to view the cost records.) Read the requirements. Requirement 1n. Allocate the two support departments' costs to the two operating departments using the reciprocal method. First, determine the linear equations for each support department AS- 1600,000 0.10 IS 18 52.400,000 0.25 AS weterminar in the ruinr fanl to the two operating depart the following: ostro Direct method Support Departments Operating Departments CORP GOVT Total bwo Su AS IS sations Direct Method Budgeted overhead costs before Interdepartment cost allocations Allocation of AS costs $ 600,000 $ 2,400,000 $ 8.750,000 $ 12,452,000 $ 24,200,000 (800,000) 320,000 280,000 (2.400,000) 800,000 1,600,000 OS 0$ 9,676,000 5 14,332,000 $ 24,208,000 Allocation of IS conta partments to the na Total budgeted overhead of operating departments Print Done 1 i Step-down method (AS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations Alocation of AS costs S 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 S 24,208,000 (600,000) 150,000 240,000 210,000 0 2,550,000 (2,550,000) 850,000 1,700,000 0 $ 9,846,000 $ 14,362,000 $ 24,208,000 Allocation of IS costs Total budgeted overhead of operating departments Print Done Step-down method (IS first) Support Departments Operating Departments AS GOVT Total IS CORP Step-down Method Budgeted overhead costs before interdepartment cost allocations Allocation of IS costs $ 600,000 $2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 240,000 (2,400,000) 720,000 1,440,000 0 840,000 (840,000) 448,000 392,000 0 $ 9,924,000 $ 14,284,000 $ 24,208,000 $ Allocation of AS costs $ Total budgeted overhead of operating departments Print Done lick the icon in view the sten-down method (IS i Reference X hree m the t. GOVT CORP Direct method 1,120,000 $ 1,090,000 Step-down (AS first) Step-down (IS first) 1,880,000 1,910,000 1,832,000 1,168,000 ent rent Print cal met pro balar Done that you there were the respond wewed by OD AB GOVT na IND

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