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The results of the allocations are as follows:
i Direct method Support Departments Operating Departments AS IS GOVT CORP Total Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs $ 600,000 $ (600,000) 2,400,000 $ 8,756,000 $ 320,000 (2,400,000) 800,000 0$ 9,876,000 $ 12,452,000 $ 24,208,000 280,000 1,600,000 14,332,000 $ 24,208,000 Total budgeted overhead of operating departments Print Done i Step-down method (AS first) Support Departments AS IS Operating Departments GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations 12,452,000 $ 24,208,000 600,000 $ (600,000) 0 2,400,000 $ 150,000 8,756,000 $ 240,000 Allocation of AS costs $ Allocation of IS costs 2,550,000 (2,550,000) 0$ 850,000 9,846,000 $ 1,700,000 14,362,000 $ 24,208,000 Total budgeted overhead of operating departments i Step-down method (IS first) Support Departments Operating Departments AS IS GOVT CORP Total Step-down Method Budgeted overhead costs before interdepartment cost allocations Allocation of IS costs 600,000 $ 240,000 2,400,000 $ 8,756,000 $ (2,400,000) 720,000 12,452,000 $ 24,208,000 1,440,000 840,000 (840,000) 448,000 392,000 Allocation of AS costs tments s Total budgeted overhead of operating departments $ 9,924,000 $ 14,284,000 $ 24,208,000 Reference CORP Direct method Step-down (AS first) Step-down (IS first) GOVT 1,120,000 $ 1,090,000 1,168,000 1,880,000 1,910,000 1,832,000 Print Print Done Done]
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