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

Required:Allocate the two support departments costs to the two operating departments using the following methods:a) Direct methodb) Step down method (allocate AS first)c) Step down method (allocate SS first)d) Reciprocal method (linear equations)Question 3(6 marks)(7 marks)(7 marks)(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 rst quarter of 2021, Ezprint's cost records indicate the following: Support Operating GOVT CORP Total Budgeted overhead costs $700,000 $2,500,000 $8,856,000 $12,552,000 $24,608,000 before inter-department cost allocations Support work supplied by 25% 50% 25% 100% AS budeted head count Support work supplied by 15% _ 35% 50% 100% SS (budgeted computer time)

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