Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative Services (AS) and information systems (1S)--and two operating departments--government consulting (GOVT) and corporato 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 te Data table 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 stop down method (IS dopartment 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)) - X C D E F Requiremer 1 First, deter SUPPORT AS IS OPERATING GOVT CORP Total AS $ 600,000 $2,400,000 S 8.756,000 5 12.452.000 $ 24,208,000 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) IS 0 25% 40% 35% 100% 10% 30% 60% 100% Print Done Duve services operating departments using the direct method and the step- AS) bons Phoe Direct method 1 Read Support Departments Operating Departments AS IS GOVT CORP Total $ Requ Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments First 600,000 $2,400,000 $ 8.756,000 $ 12,452,000 $ 24,208,000 (600,000) 320,000 280,000 (2.400,000) 800,000 1,600,000 0$ 0$ 9,876,000 $ 14,332,000 $ 24,208,000 AS $ IS Print Done es provides management consulting services to government and corporate clients Phoenix has two support departments-administrative services (AS) and information systems (S) 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) 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) Read Step-down method (AS first) Support Departments Requ Operating Departments AS IS Furst GOVT CORP Total AS Step-down Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs $ IS 5 600,000 $ 2400,000 $ 8,750,000 $12.452.000 $ 24 208.000 000,000) 150,000 240.000 210.000 0 2.550.000 (2,550,000) 850,000 1,700 000 OS 9,846,000 5 14,362,000 5 24 208,000 Allocation of Is costs Total budgeted overhead of operating departments Print Done . ner D Phoenix's cost records indicate the following (Click the icon to view the cost records.) (Click the icon to view the direct method Click the icon to view the step-down method (AS first).) Read Step-down method (IS first) Support Departments Operating Departments Regu AS IS GOVT CORP Total First, AS Step-down Method Budgeted overhead costs before interdepartment cost allocations Allocation of Is costs s IS $ 600,000 $2,400,000 5 8.750,000 $12,452.000 $ 24,208,000 240,000 (2.400,000) 720.000 1.440.000 S 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 Hd rer hoenix Partners provides management consulting services to government and prporate clients. Phoenix has two support departments-administrative services S) and information systems (IS)--and two operating departments-government onsulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, hoenix's cost records indicate the following Click the icon to view the cost records.) Read the requirements Reference 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 depart 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) ethod (IS first) - X three methods.) GOVT CORP Requirement 1a. Allocate the $ First, determine the linear equat Direct method Step-down (AS first) Step-down (IS first) 1.120,000 $ 1,090,000 1,880,000 1.910,000 1,832,000 ASE 1,168,000 IS Print Done on to view the cost records.) ements Click the icon to view the direct method.) (Click the icon to view the step-down method (AS 1 (Click the icon to view the step-down method (IS firs the three meth Requirements a. Allocate the the lineared 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equation and (b) repeated iterations. 2. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why? Print Done