Phoenix Partners provides management consulting services to The two support departments' costs have been allocated to the goverment and corporate clients. Phoenix has two support two operating departments using the direct method and the departments administrative services (AS) and information step-down method (AS department first) and the step-down systems (IS) and two operating departments-government method (IS department first). The results of the allocations are as consulting (GOVT) and corporate consulting (CORP). For the first follows: quarter of 2017. Phoenix's cost records indicate the following: (Click the icon to view the direct method.) E (Click the icon to view the cost records.) (Click the icon to view the step-down method (AS first).) Read the requirements (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) 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- $600,000 + $2,400,000 IS- uit ICON View the direct method.) Data Table SUPPORT OPERATING AS IS GOVT CORP Total $ 600,000 $ 2,400,000 $ 8,756,000 $12.452,000 $ 24,208,000 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% 40% 35% 100% 10% 0 30% 60% 100% Print Done Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments 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 Step-down method (AS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations $ 600,000 $2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 (600,000) 150,000 240,000 210,000 Allocation of AS costs 0 2,550,000 (2,550,000) 850,000 1.700.000 Allocation of IS costs Total budgeted overhead of operating departments $ 0 $ 9,846.000 $ 14,362,000 $ 24,208,000 Support Departments Operating Departments AS IS GOVT CORP Total 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 $ Allocation of AS costs Total budgeted overhead of operating departments 0 $9.924,000 $ 14,284.000 $ 24,208,000 GOVT CORP Direct method $ 1,880,000 1,120,000 $ 1,090,000 1,910,000 Step-down (AS first) Step-down (IS first) 1,168,000 1,832,000 Print Done