SUPPORT DEPARTMENTS OPERATING DEPARTMENTS

AS IS GOVT CORP Total

Budgeted overhead costs before any

interdepartment cost allocations $$600,000$ $$2,400,000$ $$8,756,000$ $$12,452,000$ $$24,208,000$

Support work supplied by AS $($Budgeted head count$)-25\%40\%35\%100\%$

Support work supplied by IS $($Budgeted computer time$)10\%-30\%60\%100\%$

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$\backslash$table$[[,$A$,$B$,$C$,$E$,$F$,$G$],[2],[3,,$SUPPORT,OPERATING,$],[4,,$AS$,$IS$,$GOVT,CORP,Total$],[5,$Budgeted overhead costs before any,,,,,$],[6,$interdepartment cost allocations,$$600,000,$$$2,400,000,$$$8,756,000,$$$12,452,000,$$$24,208,000$