Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments—administrative...

Phoenix Partners provides management consulting services to government and corporate clients. Phoenix 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, Phoenix’s cost records indicate the following:

Allocation of Administrative Services on dollar amount ranking is $150,000

1. Allocate the support divisions’ costs to the operating divisions using the direct method.
2. Allocate the support divisions’ costs to the operating divisions using the step-down method. Start with the AS Division.
1. Allocate the support divisions’ costs (administrative services and information systems) to the two operating divisions using the reciprocal method.

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ekkarill92 answered 1 year ago

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