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PLEASE SOLVE REQUIREMENT 1B. Thank you. Data table Seattle Partners provides management consulting services to government and corporate clients. Seattle has two support departments-administrative services
PLEASE SOLVE REQUIREMENT 1B. Thank you.
Data table 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 2020, Seattle's cost records indicate the following: 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: Direct method Total budgeted overhead of operating departments $ 0$ Step-down method (AS first) $ =3,432,000 Allocation of IS costs Total budgeted overhead of operating departments Step-down method (IS first) $990,000$$0 Allocation of AS costs Total budgeted overhead of operating departments \begin{tabular}{rr} \hline(990,000) \\ $0 \\ \hline \hline \end{tabular} Reference 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. First, determine the linear equations for each support department. AS=IS=++0.100.20ISAS Now allocate the support departments' costs (AS and IS department costs that you determined in the prior step) to 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.) Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Requirement 1 b. 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 parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Reciprocal Method AS IS GOVT CORP Total 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 costsStep by Step Solution
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