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A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $7 million. The

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A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $7 million. The following information is given. Gigabytes of Storage 70,000 30,000 Corporate Government Number of Consultants 170 225 Required: a. What is the cost charged to each department if the allocation is based on the number of gigabytes of storage? b. What is the cost charged to each department if number of consultants is the allocation basis? c. Most of the business in the Corporate Department is priced on a fixed fee basis, and most of the work in the Government Department is priced on a cost-plus fixed fee basis. Will this affect the choice of the allocation base? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the cost charged to each department if the allocation is based on the number of gigabytes of storage? (Round your answers to the nearest whole dollars. Do not round intermediate calculations. Enter your answers in dollars, not in millions.) Cost Allocation Corporate Government (Required A Required B > Required A Required B Required C What is the cost charged to each department if number of consultants is the allocation basis? (Round your answers to the nearest whole dollars. Do not round intermediate calculations. Enter your answers in dollars, not in millions.) Cost Allocation Corporate Government Required A Required B Required C Most of the business in the Corporate Department is priced on a fixed fee basis, and most of the work in the Government Department is priced on a cost-plus fixed fee basis. Will this affect the choice of the allocation base? OYes O No

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