ustin Partners provides management consulting services to government and corporate clients.

Austin has two support departmentsadministrative services (AS) and information systems (IS)and two operating departmentsgovernment consulting (GOVT) and corporate consulting(CORP). For the first quarter of 2017, Austin's cost records indicate the following

	SUPPORT		OPERATING
	AS	IS	GOVT	CORP	Total
Budgeted overhead costs before any interdepartment cost allocations	$330,000	$1,800,000	$7,500,000	$12,580,000	$22,210,000
Support work supplied by AS (budgeted head count)	0	25%	45%	30%	100%
Support work supplied by IS (budgeted computer time)	10%	0	27%	63%	100%

Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department.

Begin by entering the total support-department costs allocated to each operating department under each of the methods below.

	GOVT	CORP
Direct method
Step-down (AS first)
Step-down (IS first)