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Houstin Partners provides management consulting services to government and corporate clients. Houstin 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. Houstin's cost records indicate the following: Click the icon to view the cost records) Read the requirements GOVT 132.000 Requirement 1a. Alocate 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 "o for any zero batances.) Support Departments Operating Departments Direct Method AS IS CORP Total Budgeted overhead costs before interdepartment cost allocations 330,000 $ 2,100,000 $ 7,500,000's 12,500,000 $ 22,510,000 Allocation of AS costs (330,000) 198,000 Allocation of Is costs (2.100,000 630.000 1.470,000 Total budgeted overhead of operating departments O S 8,328,000 $ 14.182,000 $22.510.000 Requirement 16. Allocate the two support departments costs to the two operating departments using the step-down method (Allocato 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 "O" for any zero balances.) Support Departments Operating Departments Stop-down Method AS IS GOVT Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs (330000) CORP 330000 Allocation of Is costs Total budgeted overhead of operating departments Data table SUPPORT AS IS OPERATING 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) $ 330,000 $ 2.100.000 $ 7,500,000 $ 12,580,000 $ 22,510,000 0 20% 48% 32% 100% 10% 0 27% 63% 100% Print Done al Requirements ic 90 d og 9 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 in which to allocate support departments when using the step-down method? 1 1 91 Print Done

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