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two support Ev e nt consulting (GOVT) and corporate consulting Phoenix Partners provides management consulting services to government and corporate clients for departments administrative services
two support Ev e nt consulting (GOVT) and corporate consulting Phoenix Partners provides management consulting services to government and corporate clients for departments administrative services (AS) and information system (IS) and two operating departments CORP) For the best quarter of 2017 Phone's cost records indicate the following Check the icon to the cost records) Read the U S Requirement ta. Alocate the two support departments costs to the two operating departments using the direct method. 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 allocaong costs Enter a "0" for any zero balances) Support Departments AS IS Operating Departments GOVT CORP Direct Method Total Budgeted overhead costs before intendepartment cost alocations Alcon AS costs Allocation of costs Total bu d overhead of operating departments MI SUPPORT OPERATING GOVT CORP As 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% Print Done 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. 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? Print Done
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