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Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department. Begin by entering the total support-department costs allocated to each
Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department. Begin by entering the total support-department costs allocated to each operating department under each of the methods below. GOVT CORP Direct method Step-down (AS first) Step-down (IS first) Clear all Check answer Lola Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 390,000 $ 1,200,000 $8,850,000 $ 12,490,000 $22.930,000 Allocation of AS costs (390,000) 234,000 156,000 (1,200,000) 360,000 840,000 Allocation of IS costs Total budgeted overhead of 0 $ 0 $ 9,444,000 $ 13,486,000 $22.930,000 operating departments gio io. Clear all Check answer Get more help 10:11 AM dal Read the requirements . Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 390,000 $ 1,200,000 $8,850,000 $ 12,490,000 $22.930,000 Allocation of AS costs (390,000) 97,500 175,500 117.000 0 1,297,500 (1.297,500) Allocation of IS costs 389,250 908,250 Total budgeted overhead of $ 0 $ 9,414,750 $ 13,515,250 $22.930,000 operating departments Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary calculations and round your final answers $ Read the requirements Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 390,000 $1,200,000 $8,850,000 $ 12,490,000 $22.930,000 Allocation of IS costs 120,000 (1,200,000) 324,000 756,000 $ 0 $ 510,000 (510,000) Allocation of AS costs 306,000 204,000 Total budgeted overhead of $ 0 $ 9,480.000 $ 13,450,000 $22.930,000 operating departments Requirement 2. Compare and explain differences in the support department costs allocated to each operating department. A B C D E F 1 OPERATING SUPPORT AS IS GOVT CORP Total $ 390,000 $ 1,200,000 $ 8,850,000 $ 12,490,000 $ 22.930,000 2 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 25% 45% 30% 100% 10% ol 27% 63% 100% Print Done
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