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 2020, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. 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: (Click the icon to view the direct method.) (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 Reciprocal Method Budgeted overhead costs before interdepartment cost allocations First allocation of AS costs First allocation of IS costs Second allocation of AS costs Second allocation of IS costs Support Departments Operating Departments AS IS GOVT CORP Total Reciprocal Method Budgeted overhead costs AS IS GOVT CORP Total before interdepartment cost allocations $ Allocation of AS costs (1,224,490) 587,755 1,686,122 Allocation of IS costs 600,000 $6,000,000 $ 8,700,000 $ 12,540,000 $27,840,000 244,898 624,490 (6,244,898) 391,837 3,934,286 Total budgeted overhead of operating departments 0 $ 0 $10,973,878 $ 16,866,123 $27,840,000 Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations. (Round your final answers to the nearest whole dollar. Use Requirement 1a. 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= IS= $600,000 + $6,000,000 + 0.10 IS 0.20 AS Now allocate the support departments' costs (AS and IS department costs that you determined in the prior step) 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 "0" for any zero balances.) 1 A B SUPPORT C D E F OPERATING IS GOVT CORP Total 2 Budgeted overhead costs before any 3 interdepartment cost allocations Support work supplied by AS 4 (budgeted head count) Support work supplied by IS 5 (budgeted computer time) AS $ 600,000 $6,000,000 $ 8,700,000 $ 12,540,000 $ 27,840,000 0 20% 48% 32% 100% 10% 27% 63% 100% Print Done Now allocate the support departments' costs (AS and IS department costs that you determined in the pro 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equation and (b) repeated 2. 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?