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Q3. [20% of test] Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems
Q3. [20% of test] 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 departmentsgovernment consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2013, Phoenix's cost records indicate the following: GOVT 8,756,000 CORP 12,452,000 AS IS Budgeted overhead: $600,000 700,000 [before Inter-department allocations] Support by AS (Budgeted head count) 15% Support by IS (Budgeted computer Time) 10% ---- 30% 50% 55% 40% Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use either (a) linear equations OR (b) repeated iterations, BUT NOT BOTH. Determine the total $ cost to be allocated to GOVT $_ and CORP
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