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Required:Allocate the two support departments costs to the two operating departments using the following methods:a) Direct method (6 marks)b) Step down method (allocate AS first)

Required:Allocate the two support departments costs to the two operating departments using the following methods:a) Direct method (6 marks)b) Step down method (allocate AS first) (7 marks)c) Step down method (allocate SS first) (7 marks)d) Reciprocal method (linear equations) (5 marks)

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Ezprint Ltd provides management consulting services to government and corporate clients. Ezprint Ltd has two support departments; Administrative Services (AS) and Support Systems (SS) and two operating departments; Government Consulting (GOVT) and Corporate Consulting (CORP). For the first quarter of 2021, Ezprint's cost records indicate the following: Support Operating AS SS GOVT CORP Total Budgeted overhead costs $700,000 $2,500,000 $8,856,000 $12,552,000 $24,608,000 before interdepartment cost allocations Support work supplied by 25% 50% 25% 100% AS (budgeted head count) Support work supplied by 15% 35% 50% 100% SS (budgeted computer time)

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