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The drop down for Requirement 1 c are Allocation of AS Cost, Govt Cost, CORP Cost and IS Cost

Requirement 2 drop downs are

completely recognizes services to other departments

ignores services to other departments

partially recognizes services to other departmnets

Find its results in (even, lowest or highest allocation) to CORP.

Therefore, when AS Costs are allocated second it results in assigning relatively (even, more or lower) to GOVT

Houstin Partners provides management consulting services to government and corporate clients. Houstin has two support departments administrative services (AS) and information systems (15)and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Houstin's cost records indicate the following: E: (Click the icon to view the cost records.) Read the requirements 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 dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments Operating Departments - X Data table Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations A B C D E F 1 SUPPORT OPERATING 2 AS IS GOVT CORP Total Budgeted overhead costs before any 3 interdepartment cost allocations $ 390,000 $ 1,200,000 $ 8,675,000 $ 12,580,000 $ 22,845,000 Total budgeted overhead of operating departments Support work supplied by AS 4 (budgeted head count) 0 20% 48% 32% 100% Requirement 2. Compare and explain differences in the support-department costs allocated to each operating department. Support work supplied by IS 5 (budgeted computer time) 10% 27% 63% 100% Begin by entering the total support-department costs allocated to each operating department under each of the methods below. GOVT CORP Direct method Print Done Step-down (AS first) Step-down (IS first) to CORP. Similarly, The direct method V. The step-down method V. There is a disproportionate usage of IS services by CORP. Therefore, when AS costs are allocated first it results in GOVT.'s usage of the AS group exceeds CORP's. Therefore, when AS costs are allocated second it results in V to GOVT. Requirement 3. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? (If an input field is not used in the table, leave the input field empty; do not select a label.) The approaches that could determine the sequence in the step-down method are

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