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Data Table SUPPORT...

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Accounting

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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 (budgeted computer time) 630,000 S 2,400,000 8,825,000 S 12,550,000 S 24.405,000 20% 52% 28% 100% 10% 27% 63% 100% 1 Requirements 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 3 at approa each operating department. at approaches might be used to decide the sequence in which to allocate support departments when using the step-down method

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