Question: please verify and do requirement 2! Next Phoenix Partners provides management consulting services to question oport departments' costs have been allocated to the two government


Next Phoenix Partners provides management consulting services to question oport departments' costs have been allocated to the two government and corporate clients. Phoenix has two support partments using the direct method and the step-down departments-administrative services (AS) and information systems method (AS department first) and the step-down method (IS (IS) and two operating departments-government consulting department first). The results of the allocations are as follows: (GOVT) and corporate consulting (CORP). For the first quarter of (Click the icon to view the direct method.) 2017, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) (Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) Read the requirements (Click the icon to view a summary of the three methods.) Requirement 1a. Allocate the two support departments' costs to the two operating departments using the reciprocal method. First, determine the linear equations for each support department. AS- $600,000 0.10 IS AS IS $2,400,000 0.25 AS Now allocate the support departments costs (AS and is department costs that you determined in the prior step) to the two operating departments using the reciprocal method. (Round decimal calculations to three decimal places, XXX, and your final answers to the norest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "" for any zero balances.) Support Departments Operating Departments Reciprocal Method IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $ 600,000 $2,400,000 $ 8,756,000 $ 12,452,000 $24,208,000 Allocation of AS costs (861,538) 215,385 344,615 301,538 Allocation of IS costs 261,539 (2.615,385) 784,616 1,569,231 Total budgeted overhead of operating departments 0$ O S 9,885,231 $ 14,322,770 $24,208,000 Requirement 16. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a *o* for any zero balances.) Support Departments Operating Departments Reciprocal Method AS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations 600.000 $ 2,400,000 $ 8.756.000 $ 12,452,000 $24 208,000 IS $ Phoenix Partners provides management consulting services to question pport departments' costs have been allocated to the government and corporate clients. Phoenix has two support apartments using the direct method and the step-dow departments-administrative services (AS) and information systems method (AS department first) and the step-down method (IS (IS) and two operating departments-government consulting department first). The results of the allocations are as follows: (GOVT) and corporate consulting (CORP). For the first quarter of (Click the icon to view the direct method.) 2017, Phoenix's cost records indicate the following: Click the icon to view the cost records.) (Click the icon to view the step-down method (AS first).) (Click the icon to view the step-down method (IS first).) Read the requirements (Click the icon to view a summary of the three methods.) BE $ Budgeted overhead costs before interdepartment cost allocations 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $24,208,000 First allocation of AS costs (600,000) 150,000 240,000 210,000 2,550,000 First allocation of Is costs 255,000 (2,550,000) 765,000 1,530,000 Second allocation of AS costs (255,000) 63,750 102,000 89,250 Second allocation of Is costs 6,375 (63,750) 19,125 38,250 Third allocation of AS costs (6,375) 1,594 2,550 2.231 Third allocation of Is costs 160 (1,594) 478 956 Fourth allocation of AS costs (160) 40 64 56 Fourth allocation of IS costs (40) 12 24 Filth allocation of AS costs (4) 1 2 1 Filth allocation of IS costs (1) Total budgeted overhead of operating departments 0$ 0$ 9,885,231 $ 14,322,769 $24,208,000 Requirement 2. Compare and explain differences in requirement with those of the direct method and the stop down method. Which method do you prefer? Why? Begin by entering the total support-department costs allocated to each operating department under each of the methods below. GOVT CORP Direct method 1.120.000 1.880,000 Step-down (AS first) 1,090,000 1,910,000 Step-down (first) 1,168,000 1,832,000 Reciprocal 4 Help me solve this Fleytnann Data table SUPPORT OPERATING AS IS GOVT CORP Total $ Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS . 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 0 25% 40% 35% 100% 100 2007 104 100 Print Done you prefer? Why
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