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MZM Led provides management accounting Consulting services to love and clients, MZM has two support departments-Administrative Services and Information Systems and operating department-avnt Com OOVTand Corporate Com CORPFor the first quarter of 2021, MZM cost records indicate the following Support Departments Operating Departments Administrative Wormation Gorement Corporate Consulting Consulting Services (AS) Systems (15) GOVTI CORP ladet overhead costs Before 1400000 56.000 53242000 S600000 inter department cost doctor Support work pie Admin services 30 Suport work supplied by information Systems 100 Following table shows located support department costo operating departments using our methods of support department costs allocation Government Consulting Corporate Consulting Direct method $1 120 000 $1 880 000 Step-down (AS allocated forst) $1 090 000 51 910 000 Step-down (1S allocated first) $1 168.000 51 332 000 Reciprocal method 51 129 231 $1870 769 Required: (a) Which method of support department cost allocation will be favoured by the manager of Government Consulting Department Briefly explain why. (marks (b) Which method of support department cost allocation will be favoured by the manager of Corporate Consulting Department Briefly explain why 3 marks) (c) As the management accountant of MZM Ltd, which method of support department costs allocation you will adopt to resolve disputes between Government and Corporate Consulting departments managers with respect to their preferred method of support department cost allocation. Briefly discuss by describing the merits and demerits of each of the support department cost allocation method. 16 mars Viewssert Rommit Tools

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