The numbers in the answers are not correct when using the new data table. Thank you!

Data Table A B E F D OPERATING 1 SUPPORT AS IS GOVT CORP Total $ 600,000 $ 2,400,000 $8,756,000 S 12,452,000 $ 24,208,000 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 40% 100% 25% 35% 0 10% 30% 60% 100% Direct method Support Departments Operating Departments AS IS GOVT CORP Total S Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of Is costs Total budgeted overhead of operating departments 600,000 $ 2,400,000 $ 8.756,000 5 12,452 000 $ 24,208,000 (600,000) 320,000 280,000 (2,400,000) 800,000 1,600,000 0$ 05 9,876 000 $ 14,332 000 $ 24,208,000 $ - X Step-down method (AS first) Support Departments Operating Departments AS IS GOVT CORP Total Step down Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs $ $ 600 000 $ 2.400.000 $8,756,000 $12,452,000 $ 24,208,000 (600,000) 150.000 240,000 210,000 0 2,550,000 (2,550,000) 850.000 1,700,000 0$ 9,846,000 $14,362,000 $ 24,208,000 Allocation of IS costs Total budgeted overhead of operating departments 1 Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step down Method Budgeted overhead costs before interdepartment cost allocations Allocation of Is costs $ 600,000 $2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 240,000 (2,400,000) 720,000 1.440,000 B40,000 (840,000) 448,000 392 000 0 $ 9,924,000 5 14 284 000 $ 24,208,000 0 $ Allocation of AS costs Total budgeted overhead of operating departments Print Done 1 x Reference GOVT CORP Direct method $ 1,120,000 $ 1,090,000 1,168,000 1,880,000 1.910,000 Step-down (AS first) Step-down (IS first) 1,832,000 Print Done Chapter 16 - Homework-Catherine McCann - Personal - Microsoft Edge @ https://xlitemprod.pearsoncmg.com/api/v1/print/highered 4 point IS to the and the 367,347 LUU ds.) AS Reciprocal Method GOVT Print CORP elp N Budgeted overhead costs before interdepartment stin Parti cost allocations $ 390,000 $3,600,000 $8,750,000 $ 12,450,000 $25,190,000 Allocation of AS costs (765,306) 153,061 244,898 complet Now allocate the IS department costs and total each of the columns. Recall from step 2 (of the 3 2,000 will IS balar that the Is costs are used in the following percentages step process) that the IS costs that we will be allocating equal $3.753,061 We know from the data 10% AS, 36% GOVT, and 54% CORP. final and Remember we allocate the costs to the operating departments as well as the other support allocating department, IS. (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 ciprocal geted oy Reciprocal Method AS IS GOVT CORP Total before in Budgeted overhead costs allocation before interdepartment st allocatid cost allocations $ 390,000 $ 3,600,000 $8.750,000 $12.450,000 $ 25,190,000 Allocation of AS costs (765,306) 153,061 367 347 244,898 st allocati Allocation of IS costs 375,306 (3.753,061) 1.351.102 2,026,653 cond allod Total budgeted overhead of $ 0 $10,468,449 $ 14,721,551 $25,190,000 operating departments cond allod Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method Use repeated iterations (Ros Dalan Print Calculator Clear All Check Answer Si Ahead KUUL Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations Parti The first allocation of AS costs will be similar the step-down method. Again, will use the AS percentages 20% IS, 48% GOVT, and 32% CORP to allocate the AS costs to the other three -mple departments. Calculate the allocation amounts' now and determine the new balance of support 00 wil costs in the IS department (Round your final answers to the nearest whole dollar. Use parentheses balar or a minus sign when decreasing departments by allocating costs.) al ans Support Departments Operating Departments cating Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs rocal before interdepartment ted on cost allocations $ 390,000 $ 3.600,000's 8,750,000 $ 12,450,000 $25,190,000 fore in First allocation of AS costs (390,000) 78,000 124.800 ocation 3,678,000 llocati The next step in performing repeated iterations is to allocate the IS support costs to the other three departments using the IS percentages 10% AS 36% GOVT, and 54% CORP Remember in this llocati step we are allocating the adjusted balance of support costs of $3.678.000 in the IS department Calculate the allocation amounts now and determine the new balance of support costs in the AS nd allod department (Round your final answers to the nearest whole dollar Use parentheses or a minus and allod sign when decreasing departments by allocating costs. Complete all input fields) Support Departments Operating Departments 187 200 The next step in performing repeated iterations is to allocate the IS support costs to the other three departments using the IS percentages 10% AS, 36% GOVT, and 54% CORP. Remember in this step we are allocating the adjusted balance of support costs of $3,678,000 in the IS department. Calculate the allocation amounts now and determine the new balance of support costs in the AS department (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all input fields.) Support Departments Operating Departments AS IS GOVT CORP Total Reciprocal Method Budgeted overhe costs before interdepartment cost allocations First allocation of AS costs $ 390,000 $ 3,600,000 $ 8.750,000 $ 12,450,000 $ 25,190,000 (390,000) 78 000 187 200 124,800 3.678,000 367 800 (3,678,000) 1,324 080 1.986.120 First allocation of IS costs Print How complete the second allocation of costs. Begin with the AS costs. Remember the adj alance of $367 800 will be allocated using the AS percentages-20% IS 48% GOVT, and 32% CORP. Then, the new IS balance will be allocated using the IS percentages 10% AS, 36% SOVT, and 54% CORP. (Round your final answers to the nearest whole dollar Use parentheses or minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 390,000 $ 3,600,000 $ 8,750,000 $ 12.450,000 $ 25.190,000 First allocation of AS costs (390,000) 78,000 187 200 124,800 3,678,000 First allocation of IS costs 367 800 (3.678,000) 1.324,080 1,986,120 Second allocation of AS costs (367 800) 73,560 176,544 117,696 Second allocation of IS costs 7,356 (73,560) 39,722 26.482 Now complete the remai allocations rising the same nocess as in the first two allocations Second allocation of IS costs 1,356 (13,560) 26,482 39,122 Print Now complete the remaining allocations using the same process as in the first two allocations. Notice, that in the last allocation that we will force the remaining costs to the operating department with the highest percentage of use. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs ill before interdepartment cost allocations $ 390,000 $ 3,600,000 $ 8,750,000 $ 12,450,000 $25,190,000 79 First allocation of AS costs (390,000) 78,000 187,200 9 124,800 3,678,000 First allocation of IS costs 367 800 (3.678,000) 1,324,080 1,986,120 1 Second allocation of AS costs (367,800) 73,560 176,544 117.696 Second allocation of IS costs 7,356 (73,560) 26.482 39,722 or Third allocation of AS costs (7,356) 1,471 3,531 2,354 Third allocation of IS costs |(1,471) 530 794 tid Fourth allocation of AS costs 47 Fourth allocation of IS costs 3 (29) 10 16 tid Fifth allocation of AS costs 147 (147) 29 71 (3) od (1) Fifth allocation of IS costs od 1. HAH Finally, complete the table by calculating the total costs in each department (Enter a "0" for any zero balances.) Support Departments Operating Departments AS IS GOVT CORP Total Reciprocal Method Budgeted overhead costs before interdepartment cost allocations First allocation of AS costs First allocation of IS costs Second allocation of AS costs Second allocation of IS costs Third allocation of AS costs $ 390,000 $ 3,600,000 $ 8,750,000 $ 12,450,000 $25,190,000 (390,000) 78,000 187,200 124,800 3,678,000 367,800 (3,678,000) 1.324,080 1,986,120 (367,800) 73,560 176,544 117,696 7356 (73,560) 26,482 39,722 (7.356) 1,471 3,531 2,354 147 (1.471) 530 794 (147) 29 71 47 3 (29) 10 16 (3) 1 1 Third allocation of IS costs Fourth allocation of AS costs Fourth allocation of IS costs Fifth allocation of AS costs (1) Fifth allocation of IS costs Total budgeted overhead of operating departments $ 0 $ 0 $10.468,449 $ 14,721,551 $25,190,000 ht the direct mother Requirement 2. Compare and explain differences in requirement 1 with those of the direct metho and the step-down method. Which method do you prefer? Why? Begin by reviewing the total support department costs allocated to each operating department under each of the methods below. The allocated costs for the reciprocal method t are determined by subtracting the unallocated costs from the ending (allocated costs) and have been entered for you GOVT 3 Direct method $ Step-down (AS first) Step-down (IS first) Reciprocal 1,674,000 $ 1,658,400 1.746.000 1.718,449 CORP 2.316.000 2,331,600 2,244,000 2,271,551 The four methods differ in the level of support department cost allocation across support departments. The level of reciprocal service by support departments is material. AS supplies 20% of its services to IS. IS supplies 10% of its services to AS, The IS has a budget of $3,600,000 that is significantly higher than the AS budget of $390,000 Data Table A B E F D OPERATING 1 SUPPORT AS IS GOVT CORP Total $ 600,000 $ 2,400,000 $8,756,000 S 12,452,000 $ 24,208,000 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 40% 100% 25% 35% 0 10% 30% 60% 100% Direct method Support Departments Operating Departments AS IS GOVT CORP Total S Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of Is costs Total budgeted overhead of operating departments 600,000 $ 2,400,000 $ 8.756,000 5 12,452 000 $ 24,208,000 (600,000) 320,000 280,000 (2,400,000) 800,000 1,600,000 0$ 05 9,876 000 $ 14,332 000 $ 24,208,000 $ - X Step-down method (AS first) Support Departments Operating Departments AS IS GOVT CORP Total Step down Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs $ $ 600 000 $ 2.400.000 $8,756,000 $12,452,000 $ 24,208,000 (600,000) 150.000 240,000 210,000 0 2,550,000 (2,550,000) 850.000 1,700,000 0$ 9,846,000 $14,362,000 $ 24,208,000 Allocation of IS costs Total budgeted overhead of operating departments 1 Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step down Method Budgeted overhead costs before interdepartment cost allocations Allocation of Is costs $ 600,000 $2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 240,000 (2,400,000) 720,000 1.440,000 B40,000 (840,000) 448,000 392 000 0 $ 9,924,000 5 14 284 000 $ 24,208,000 0 $ Allocation of AS costs Total budgeted overhead of operating departments Print Done 1 x Reference GOVT CORP Direct method $ 1,120,000 $ 1,090,000 1,168,000 1,880,000 1.910,000 Step-down (AS first) Step-down (IS first) 1,832,000 Print Done Chapter 16 - Homework-Catherine McCann - Personal - Microsoft Edge @ https://xlitemprod.pearsoncmg.com/api/v1/print/highered 4 point IS to the and the 367,347 LUU ds.) AS Reciprocal Method GOVT Print CORP elp N Budgeted overhead costs before interdepartment stin Parti cost allocations $ 390,000 $3,600,000 $8,750,000 $ 12,450,000 $25,190,000 Allocation of AS costs (765,306) 153,061 244,898 complet Now allocate the IS department costs and total each of the columns. Recall from step 2 (of the 3 2,000 will IS balar that the Is costs are used in the following percentages step process) that the IS costs that we will be allocating equal $3.753,061 We know from the data 10% AS, 36% GOVT, and 54% CORP. final and Remember we allocate the costs to the operating departments as well as the other support allocating department, IS. (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 ciprocal geted oy Reciprocal Method AS IS GOVT CORP Total before in Budgeted overhead costs allocation before interdepartment st allocatid cost allocations $ 390,000 $ 3,600,000 $8.750,000 $12.450,000 $ 25,190,000 Allocation of AS costs (765,306) 153,061 367 347 244,898 st allocati Allocation of IS costs 375,306 (3.753,061) 1.351.102 2,026,653 cond allod Total budgeted overhead of $ 0 $10,468,449 $ 14,721,551 $25,190,000 operating departments cond allod Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method Use repeated iterations (Ros Dalan Print Calculator Clear All Check Answer Si Ahead KUUL Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations Parti The first allocation of AS costs will be similar the step-down method. Again, will use the AS percentages 20% IS, 48% GOVT, and 32% CORP to allocate the AS costs to the other three -mple departments. Calculate the allocation amounts' now and determine the new balance of support 00 wil costs in the IS department (Round your final answers to the nearest whole dollar. Use parentheses balar or a minus sign when decreasing departments by allocating costs.) al ans Support Departments Operating Departments cating Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs rocal before interdepartment ted on cost allocations $ 390,000 $ 3.600,000's 8,750,000 $ 12,450,000 $25,190,000 fore in First allocation of AS costs (390,000) 78,000 124.800 ocation 3,678,000 llocati The next step in performing repeated iterations is to allocate the IS support costs to the other three departments using the IS percentages 10% AS 36% GOVT, and 54% CORP Remember in this llocati step we are allocating the adjusted balance of support costs of $3.678.000 in the IS department Calculate the allocation amounts now and determine the new balance of support costs in the AS nd allod department (Round your final answers to the nearest whole dollar Use parentheses or a minus and allod sign when decreasing departments by allocating costs. Complete all input fields) Support Departments Operating Departments 187 200 The next step in performing repeated iterations is to allocate the IS support costs to the other three departments using the IS percentages 10% AS, 36% GOVT, and 54% CORP. Remember in this step we are allocating the adjusted balance of support costs of $3,678,000 in the IS department. Calculate the allocation amounts now and determine the new balance of support costs in the AS department (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all input fields.) Support Departments Operating Departments AS IS GOVT CORP Total Reciprocal Method Budgeted overhe costs before interdepartment cost allocations First allocation of AS costs $ 390,000 $ 3,600,000 $ 8.750,000 $ 12,450,000 $ 25,190,000 (390,000) 78 000 187 200 124,800 3.678,000 367 800 (3,678,000) 1,324 080 1.986.120 First allocation of IS costs Print How complete the second allocation of costs. Begin with the AS costs. Remember the adj alance of $367 800 will be allocated using the AS percentages-20% IS 48% GOVT, and 32% CORP. Then, the new IS balance will be allocated using the IS percentages 10% AS, 36% SOVT, and 54% CORP. (Round your final answers to the nearest whole dollar Use parentheses or minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 390,000 $ 3,600,000 $ 8,750,000 $ 12.450,000 $ 25.190,000 First allocation of AS costs (390,000) 78,000 187 200 124,800 3,678,000 First allocation of IS costs 367 800 (3.678,000) 1.324,080 1,986,120 Second allocation of AS costs (367 800) 73,560 176,544 117,696 Second allocation of IS costs 7,356 (73,560) 39,722 26.482 Now complete the remai allocations rising the same nocess as in the first two allocations Second allocation of IS costs 1,356 (13,560) 26,482 39,122 Print Now complete the remaining allocations using the same process as in the first two allocations. Notice, that in the last allocation that we will force the remaining costs to the operating department with the highest percentage of use. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments Reciprocal Method AS IS GOVT CORP Total Budgeted overhead costs ill before interdepartment cost allocations $ 390,000 $ 3,600,000 $ 8,750,000 $ 12,450,000 $25,190,000 79 First allocation of AS costs (390,000) 78,000 187,200 9 124,800 3,678,000 First allocation of IS costs 367 800 (3.678,000) 1,324,080 1,986,120 1 Second allocation of AS costs (367,800) 73,560 176,544 117.696 Second allocation of IS costs 7,356 (73,560) 26.482 39,722 or Third allocation of AS costs (7,356) 1,471 3,531 2,354 Third allocation of IS costs |(1,471) 530 794 tid Fourth allocation of AS costs 47 Fourth allocation of IS costs 3 (29) 10 16 tid Fifth allocation of AS costs 147 (147) 29 71 (3) od (1) Fifth allocation of IS costs od 1. HAH Finally, complete the table by calculating the total costs in each department (Enter a "0" for any zero balances.) Support Departments Operating Departments AS IS GOVT CORP Total Reciprocal Method Budgeted overhead costs before interdepartment cost allocations First allocation of AS costs First allocation of IS costs Second allocation of AS costs Second allocation of IS costs Third allocation of AS costs $ 390,000 $ 3,600,000 $ 8,750,000 $ 12,450,000 $25,190,000 (390,000) 78,000 187,200 124,800 3,678,000 367,800 (3,678,000) 1.324,080 1,986,120 (367,800) 73,560 176,544 117,696 7356 (73,560) 26,482 39,722 (7.356) 1,471 3,531 2,354 147 (1.471) 530 794 (147) 29 71 47 3 (29) 10 16 (3) 1 1 Third allocation of IS costs Fourth allocation of AS costs Fourth allocation of IS costs Fifth allocation of AS costs (1) Fifth allocation of IS costs Total budgeted overhead of operating departments $ 0 $ 0 $10.468,449 $ 14,721,551 $25,190,000 ht the direct mother Requirement 2. Compare and explain differences in requirement 1 with those of the direct metho and the step-down method. Which method do you prefer? Why? Begin by reviewing the total support department costs allocated to each operating department under each of the methods below. The allocated costs for the reciprocal method t are determined by subtracting the unallocated costs from the ending (allocated costs) and have been entered for you GOVT 3 Direct method $ Step-down (AS first) Step-down (IS first) Reciprocal 1,674,000 $ 1,658,400 1.746.000 1.718,449 CORP 2.316.000 2,331,600 2,244,000 2,271,551 The four methods differ in the level of support department cost allocation across support departments. The level of reciprocal service by support departments is material. AS supplies 20% of its services to IS. IS supplies 10% of its services to AS, The IS has a budget of $3,600,000 that is significantly higher than the AS budget of $390,000