abled: Assignment 2 Saved Help Save & Exit KV Accounting and Business Consultants provides a variety of consulting services to a diverse range of clients. The company has three support departments and three revenue-generating departments, whose cost details for a typical quarter are presented below: Support Departments $ 286,000 IT Support Admin Support 718,000 Facilities Support 203,400 Revenue-Generating Departments Assurance 871,200 Tax Advisory Business Advisory 626,000 794,100 $3,498,700 The existing cost allocation system is designed as follows: (1) the support department costs are allocated to the three revenue- generating departments, and (2) the revenue-generating department costs are allocated to individual clients. The support department costs are allocated to the revenue-generating departments as follows: (1) IT Support costs are allocated to Assurance, Tax Advisory. and Business Advisory using a 40:20:40 ratio: (2) Admin Support costs are allocated using a 50:20:30 ratio, and (3) Facilities Support costs are allocated using a 35.35.30 ratio. The costs accumulated in the three revenue-generating departments are allocated to individual clients based on the professional time consumed in the respective department. The Assurance. Tax Advisory, and Business Advisory departments recorded 10,200, 8,700, and 7.200 hours, respectively, for the quarter Submit 00, 8,700, and 7,200 hours, respectively, for the quarter. Required: 1. Compute the predetermined cost allocation rates for the three revenue generating departments. (Round your answers to 2 decimal places.) 2:18:50 Predetermined Cost Allocation Rate Assurance Fook Tax Advisory Business Advisory 2. Using the rates computed in Requirement (1) above, assign the costs to clients X and Y. Client X required 460, 600 and 720 hours of professional time, respectively, in the Assurance, Tax Advisory and Business Advisory departments, whereas client Y required 720 870 and 320 hours of professional time. (Do not round intermediate calculations. Round your answers to the nearest whole doller) Client Y Client X Assurance Service Tax Advisory Service Business Advisory Service $ 0$ 0 Cost Driver (allocation base) Allocation Base Quantity Activity Cost Pool IT Support Admin Support Facilities Support Assurance IT time Sales revenue 16,800 hours $69.58 million 24,270 hours 10,200 hours 8,700 hours 7,200 hours Total professional time Assurance professional time Tax advisory professional tine Business advisory professional time Tax Advisory Business Advisory Compute the predetermined allocation rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate IT Support per IT support hour Admin Support % of sales revenue Facilities Support per hour of professional time per hour of assurance professional time Assurance Tax Advisory per hour of tax advisory professional time per hour of business advisory professional time Business Advisory 4. In addition to the Assurance, Tax Advisory, and Business Advisory time specified in Requirement (2) above, the two clients consumed the following additional resources: Resource Client V client X 470 $1,472,400 IT time (hours) Sales revenue 270 $981,600 Assign the costs to the two clients using activity-based costing. (Round intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Client X Client Y IT Support Admin Support Facilities Support Assurance Tax Advisory Business Advisory 5 0$