Question
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $6 million. The
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $6 million. The following information is given:
Gigabytes of Storage | Number of Consultants | |||||
Corporate | 75,000 | 150 | ||||
Government | 50,000 | 170 | ||||
Required:
a. What is the cost charged to each department if the allocation is based on the number of gigabytes of storage? (Do not round intermediate calculations. Enter your answers in thousands of dollars.)
b. What is the cost charged to each department if number of consultants is the allocation basis? (Do not round intermediate calculations. Enter your answers in thousands of dollars.)
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