Data Table SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any nterdepartment Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) t cost allocations 600,000 $ 2,400,000 8,756,000 $ 12,452,000 $ 24,208,000 25% 40% 35% 100% 10% 30% 60% 100% Print Done Direct method Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs $ 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments (600,000) 320,000 280,000 1,600,000 (2,400,000) 800,000 0 $ 0 $ 9,876,000 $ 14,332,000 $ 24,208,000 Print Done Step-down method (AS first) Support Departments_Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations 600,000$2,400,000 $ 8,756,000 12,452,000 $24,208,000 150,000 240,000 Allocation of AS costs 210,000 0 2,550,000 (2,550,000) Allocation of IS costs 850,000 1,700,000 0 $ 9,846,000 $ 14,362,000 $ 24,208,000 Total budgeted overhead of operating departments Print Done i Step-down method (IS first) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 Allocation of IS costs 240,000 (2,400,000) 720,000 1,440,000 0 840,000 (840,000) 0 448,000 392,000 Allocation of AS costs $ 9,924,000 $ 14,284,000 $ 24,208,000 Total budgeted overhead of operating departments Print Done Reference 1 GOVT CORP Direct method Step-down (AS first) Step-down (IS first) 1,120,000 $ 1,090,000 1,168,000 1,880,000 1,910,000 1,832,000 Print Done