Requirement 1a. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use a linear equation.

Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determine the linear equations for each support department.

AS=	$390,000	+	0.10	IS
IS=	$3,900,000	+	0.20	AS

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, X.XXX, and your final answers to the nearest whole dollar. Use brackets or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.)

I WANT VERY DETAILED SOLUTION WITH EXPLANATION.

Summary of the three methods Support Departments Operating Departments Reciprocal method AS IS GOVT CORP Total Budgeted overhead costs before interdepartmental cost allocations $390,000 $3,900,000 $8,825,000 $12,470,000 $ 25,585,0 First allocation of AS (390,000) 78,000 3,978,000 87,200 24,800 costs First allocation of IS costs Second allocation of AS costs Second allocation of IS costs 397,800 (3,978,000) 1,432,080 2,148,120 (397,800) 79,560 190,944127,296 42,962 7,956 79,560 28,642