Question
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $13.71 million. The
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $13.71 million. The following information is given:
Gigabytes of Storage | Number of Consultants | |||||
Corporate | 87,600 | 125 | ||||
Government | 48,500 | 155 | ||||
Required:
What is the cost allocation if fixed computer costs of $7.71 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of storage used by the department? (Round your answers to the nearest whole dollars. Enter your answers in dollars, not in millions. Do not round intermediate calculations.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started