Manhattan Partners provides management consulting services to government and corporate clients. Manhattan has two support departments-administrative...

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Manhattan Partners provides management consulting services to government and corporate clients. Manhattan has two support departments-administrative services (AS) and information systems (IS)-and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Manhattan's cost records indicate the following: EClick the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs 600,000 (600,000) before interdepartment cost allocations 1,500,000 8,850,000 12.550.000 23,500,000 Allocation of AS costs (1,500,000) Allocation of IS costs Total budgeted overhead of operating departments SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations 600,000 $ 1,500,000 $ 8,850,000 S 12,550,000 $ 23,500,000 Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 25% 45% 30% 100% 10% 27% 63% 100% Requirement 1b. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate AS first). (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary calculations and round your final answers to the nearest whole doliar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department. Begin by entering the total support-department costs allocated to each operating department under each of the methods below. GOVT CORP Direct method Step-down (AS first) Step-down (IS first) Manhattan Partners provides management consulting services to government and corporate clients. Manhattan has two support departments-administrative services (AS) and information systems (IS)-and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Manhattan's cost records indicate the following: EClick the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs 600,000 (600,000) before interdepartment cost allocations 1,500,000 8,850,000 12.550.000 23,500,000 Allocation of AS costs (1,500,000) Allocation of IS costs Total budgeted overhead of operating departments SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations 600,000 $ 1,500,000 $ 8,850,000 S 12,550,000 $ 23,500,000 Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 25% 45% 30% 100% 10% 27% 63% 100% Requirement 1b. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate AS first). (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary calculations and round your final answers to the nearest whole doliar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Total budgeted overhead of operating departments Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department. Begin by entering the total support-department costs allocated to each operating department under each of the methods below. GOVT CORP Direct method Step-down (AS first) Step-down (IS first)

Answer rating: 100% (QA)

A B D E 1 la Direct method 2 Support department Operating departments Total 3 AS IS Govt CO... View the full answer