CoursHeroTranscribedText: Hudson Partners provides management consulting services to government and corporate clients. Hudson has two...

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CoursHeroTranscribedText: Hudson Partners provides management consulting services to government and corporate clients. Hudson has two support departmentsadministrative services (AS) and information systems (lS)and two operating departmentsgovernment consulting {GOVT} and corporate consulting (CORP). For the rst quarter of 201?, Hudson's cost records indicate the following: SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations $ 390,000 $ 3,600,000 $ 8,675,000 $ 12,420,000 $ 25,085,000 Support work supplied by AS (budgeted head count) 0 20% 48% 32% 100% Support work supplied by IS (budgeted computer time) 10% 0 36% 54% 100%Requirements 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use {a} linear equation and (o) repeated iterations. 2. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why

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