Question: Home Incen Page Layout Formulas Data Review View C SUPPORT OPERATING 1 2 AS IS GOVT CORP Total 3 Budgeted overhead costs before any

Home Incen Page Layout Formulas Data Review View C SUPPORT OPERATING 1

Home Incen Page Layout Formulas Data Review View C SUPPORT OPERATING 1 2 AS IS GOVT CORP Total 3 Budgeted overhead costs before any 4 interdepartment cost allocations Support work supplied by AS 5 (budgeted head count) $600,000 $2,400,000 $8,756,000 $12,452,000 $24,208.000 25% 40% 35% 100% Support work supplied by IS (budgeted computer time) 10% - 30% 60% 100% 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) c. 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 inch to allocate support departments when using the step-down method?

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