A

B

C

D

E

F

$1$

SUPPORT

OPERATING

$2$

AS

IS

GOVT

CORP

Total

$3$

Budgeted overhead costs before any interdepartment cost allocations

$$600,000$

$$1,200,000$

$$8,725,000$

$$12,540,000$

$$23,065,000$

$4$

Support work supplied by AS $($budgeted head count$)$

$0$

$20\%$

$48\%$

$32\%$

$100\%$

$5$

Support work supplied by IS $($budgeted computer time$)$

$10\%$

$0$

$36\%$

$54\%$

$100\%$Direct Method

AS

IS

GOVT

CORP

Total

Budgeted overhead costs

before interdepartment cost allocations

$390000$

$3000000$

$8825000$

$12540000$

$24755000$

Allocation of AS costs

Allocation of IS costs

Total budgeted overhead of operating departments