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SUPPORT AS IS OPERATING GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (Budgeted head count) Support work

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SUPPORT AS IS OPERATING GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (Budgeted head count) Support work supplied by IS (Budgeted computer time) $600,000 $2,400,000 25% 10% $8,756,000 $12.452.000 $24,208,000 40% 35% 100% 30% 60% 100% required: allocate the two support departments cost to the two operating departments using the following methods: a. Direct method b. step-down method (allocate AS first) c. step-down method (allocate IS first) d. reciprocal method

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