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ASSIGNMENT 2 - ALLOCATING SUPPORT DEPARTMENT COSTS Phoenix Partners provides management-consulting services to government and corporate clients. Phoenix has two support departments administrative services (AS)

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ASSIGNMENT 2 - ALLOCATING SUPPORT DEPARTMENT COSTS Phoenix Partners provides management-consulting services to government and corporate clients. Phoenix 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 2021, Phoenix's cost records indicate the following: SUPPORT AS IS OPERATING GOVT CORP Total $600,000 $2,400,000 $8,756,000 $12,452,000 $24,208,000 Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 25% 40% 35% 100% 10% 30% 60% 100% Required: Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method c. Reciprocal method

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