Please answer ALL requirements.

E15-20 (final answer) Question Help Seattle Partners provides management consulting services to government and corporate clients. Seattle 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 2013, Seattle'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).) (Click the icon to view the step-down method (IS first).) Read the requirements F(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. Use (a) linear equation. (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.) Support Departments Operating Departments Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer GOV Reciprocal Method AS IS CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments Enter any number in the edit fields and then click Check Answer ? - X i Data Table SUPPORT OPERATING Total AS IS GOVT CORP Budgeted overhead costs before any S 8,750,000 S 12,470,000 S 25,180,000 660,000 S 3,300,000 interdepartment cost allocations Support work supplied by AS 20% 48% (budgeted head count) 32% 100% Support work supplied by IS (budgeted computer time) 10% 27% 63% 100% Print Done - X Requirements 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 - X i Direct method Support Departments Operating Departments AS CORP Direct Method IS GOVT Total Budgeted overhead costs before interdepartment cost allocations 660,000 $ 3,300,000 8,750,000 $ 12,470,000 25,180,000 Allocation of AS costs 396,000 (660,000) 264,000 2,310,000 (3,300,000) 990,000 Allocation of IS costs O $ 0 $ 10,136,000 s 15,044,000 $ 25,180,000 $ Total budgeted overhead of operating departments Print Done Step-down method (AS first) Support Departments Operating Departments Step-down Method GOVT Total IS CORP AS Budgeted overhead costs before interdepartment cost allocations 660,000 $ 3,300,000 8,750,000 12,470,000 $ 25,180,000 (660,000) 132,000 Allocation of AS costs 316,800 211,200 3,432,000 (3,432,000) 1,029,600 2,402,400 Allocation of IS costs O $ 10,096,400 $ 15,083,600 $ 25,180,000 $ Total budgeted overhead of operating departments Print Done X Step-down method (IS first) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations 660,000 $ 3,300,000 8,750,000 S 12,470,000 $ 25,180,000 (3,300,000) 330,000 2,079,000 Allocation of IS costs 891,000 990,000 (990,000) 594,000 396,000 Allocation of AS costs 10,235,000 $ 14,945,000 25,180,000 10 Total budgeted overhead of operating departments Print Done X