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Question Help o Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments-administrative services (AS) and information systems and

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Question Help o Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments-administrative services (AS) and information systems and two operating departemente-government consulting OVT) and corporate consulting CORP) For the first quarter of 2020. Austie's cost records indicate the following (Click the icon to view the cost records ) Read the items Requirement ta. Allocate the two support departments' costs to the two operating departments using the direct method of round mediary in and on your final answers to the nearest whole dollar se perentheses or a minus sign when decreasing department by ting costs for any lonces) Support Departments Operating Departments Direct Method AS is GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Alocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments Data Table B o D 1 SUPPORT OPERATING IN AS IS GOVT CORP Total s 390,000 S 2,100,000 $ 8,700,000 $ 12.425.000 $ 23,615,000 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) 0 20% 48% 3296 100% 10% ol 27% 100% dep rer Requirements nediar zero ba 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method (Allocate AS first) C. Step-down method (Allocate IS first) 2. Compare and explain differences in the support-department costs allocated to each operating department. 3. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? tm Print Done

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