SCO Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments administrative services (AS) and information systems (18) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017. Austin's cost records indicate the following Click the icon to view the cost records.) Read the requirements ICO SCO Requirement 1a. Allocate the two support departments costs to the two operating departments using the direct method. (Do not round informediary 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 zoro balances) Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budpoled overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs bo VCC Total budooted overhead of operating departments Time Remaining: 00 43.15 Submit quiz Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments-administrative services (AS) and information systems (S) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Austin's cost records indicate the foliowing Click the icon to view the cost records) Read the requirements Requirement 1b. Allocate the two support departments' costs to the two oporating departments using the step-down mothod (Allocato AS first). (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 "o" for any zero balances.) Support Departments Operating Departments Step-down Method GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations AS IS Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments-administrative services (AS) and information systems (IS)--and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Austin's cost records indicate the following Click the icon to view the cost records) Read the requirements Total budgeted overhead of operating departments Requirement 1c. Allocate the two support departments costs to the two operating departments using the step-down mothod (Allocate is first). (Do not round intermediary calculations and round your final answers to the nearest whole dollar Uso parentheses or a minus sign when decreasing departments by allocating costs. Enter a "O" for any zero balances.) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments administrative services (AS) and information systems (15)and two operating departments government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Austin's cost records indicate the following Click the icon to view the cost records) Read the requirements Total budgeted overhead of operating departments Requirement 2. Compare and explain differences in tho support-department costs allocated to each operating department Bogin 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) Sted-down (IS first CO Austin Partners provides management consulting services to government and corporate clients. Austin has two support departments administrative services (AS) and information systems (15)and two operating departments-government consulting (GOVT) and corporate consulting (CORP) For the first quarter of 2017. Austin's cost records indicate the following Click the icon to view the cost records) Read the requirements ICO ico There Direct method Stop-down (AS first) Stop-down (IS first) The direct method The stop-down method is a disproportionato usage of is services by CORP Therefore, when AS costs are allocated first results in to CORP. Similarly GOVT a usage of the AS group oxceeds CORPs. Therefore, whon AS costs are allocated second it results in to GOVT Requirement 3. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? (lt a box is not used in the tablo, leave the box omply do not select a label.) The approaches that could determine the sequence in the step-down method are be st Austin Partners provides management consulting services to government and corporale cionts. Austin has two support departments administrative services (AS) and information systems (15and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017 Austin's cost records indicate the following Click the icon to view the cost records) Read the reducements The direct method The stop-down method is a disproportionate usage of IS services by CORP. Therefore, when AS costs are allocated first it results in to CORP. Similarly, GOVT's usage of tho AS group oxopeds CORP's. Therefore, whon AS costs are allocated second it results in Requirement 3. What approaches might bo used to decide the sequence in which to allocate support departments whion using the top-down method? (It a box is not used in the tablo, leave the box empty, do not select a label) The approaches that could determine the sequence in the stop-down method are: There y to GOVT - Data table SUPPORT OPERATING GOVT CORP AS IS Total yn $ 690,000 $ 1,500,000 $ 7,500,000 $ 12,450,000 $ 22,140,000 Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 20% 52% 28% 100% 10% 0 27% 63% 100% be Print Done 7 Je nag es - of Requirements ned a. 1. Allocate the two support departments' costs to the two operating departments using the following methods: Direct method b. Step-down method (Allocate AS first) 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? C. cost Print Done and
