XsE E15-20 (similar to) Question Help Atlanta Partners provides management consulting services to government and corporate clients. Atlanta has two support The two support departments costs have been allocated to the two operating departments using the direct method and departments-administrative services (AS) and information systems (IS)-and two operating departments govenment consultling (GOVT) and corporate consulting (CORP). For the first quarter of 2013, Allanta's allocations are as follows: the step-down method (AS department first) and the step-down method (IS department first). The resuits of the the following: (Click the icon to view the direct method.) (Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) (Click the icon to view the cost records.) Read the requirements Requirement 1a. Allocate the bwo support departments' costs to the two operating departments using the reciprocal method. First, determine the linear equations for each support department. S660,000 0.10 IS Data Table Now s using the reciprocal method. (Round decimal calculations to three decimal places, XXX, and your SUPPORT OPERATING Re AS IS GOVT CORP Total Budgeted overhead costs before any 1. Allccate the two support departments' costs to the two operating departments S 660,000 S 3,300,000 S7,325,000 S 12,550,000 $ 23,835,000 interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) using the reciprocal method. Use (a) linear equation and (b) repeated iterations. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why? 2. 20% 48% 32% 100% 10% 27% 63% 100% PrintDone Ente Print Done 4 Check Answer XsE E15-20 (similar to) Question Help Atlanta Partners provides management consulting services to government and corporate clients. Atlanta has two support The two support departments costs have been allocated to the two operating departments using the direct method and departments-administrative services (AS) and information systems (IS)-and two operating departments govenment consultling (GOVT) and corporate consulting (CORP). For the first quarter of 2013, Allanta's allocations are as follows: the step-down method (AS department first) and the step-down method (IS department first). The resuits of the the following: (Click the icon to view the direct method.) (Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) (Click the icon to view a summary of the three methods.) (Click the icon to view the cost records.) Read the requirements Requirement 1a. Allocate the bwo support departments' costs to the two operating departments using the reciprocal method. First, determine the linear equations for each support department. S660,000 0.10 IS Data Table Now s using the reciprocal method. (Round decimal calculations to three decimal places, XXX, and your SUPPORT OPERATING Re AS IS GOVT CORP Total Budgeted overhead costs before any 1. Allccate the two support departments' costs to the two operating departments S 660,000 S 3,300,000 S7,325,000 S 12,550,000 $ 23,835,000 interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) using the reciprocal method. Use (a) linear equation and (b) repeated iterations. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why? 2. 20% 48% 32% 100% 10% 27% 63% 100% PrintDone Ente Print Done 4 Check