Enabled: Assignment 2 Saved 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: IT Support Support Departments Admin Support Facilities Support $ 292,000 726,000 207,200 887,600 Revenue Generating Departments Tax Advisory Assurance Business Advisory 638,000 806,500 $3,557,300 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 30:30:40 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 10,600, 9,100, and 7,600 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.) Assurance Tax Advisory Business Advisory Predetermined Cost Allocation Rate Prev 1 of 4 Next > Chp Enabled: Assignment 2 Saved 2. Using the rates computed in Requirement (1) above, assign the costs to clients X and Y. Client X required 500, 640 and 760 hours of professional time, respectively, in the Assurance, Tax Advisory and Business Advisory departments, whereas client Y required 760, 910 and 360 hours of professional time. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Assurance Service 14. Tax Advisory Service Business Advisory Service Client X Client Y 3. You have recently learned about activity-based costing and decide to use six activity cost pools, one for each department. The additional information you have collected is as follows: Activity Cost Pool IT Support Admin Support Facilities Support Assurance Tax Advisory Business Advisory IT time Sales revenue Cost Driver (allocation base) Total professional time Assurance professional tine Tax advisory professional time Business advisory professional time Allocation Base Quantity 17,400 hours $ 69.64 million 24,870 hours 10,600 hours 9,100 hours 7,600 hours Compute the predetermined allocation rate for each activity cost pool. (Round your answers to 2 decimal places.) IT Support Activity Cost Pool Admin Support Facilities Support Activity Rate per IT support hour % of sales revenue per hour of professional time Prey 1 of 4 Next > ng Enabled: Assignment 2 Saved 3. You have recently learned about activity-based costing and decide to use six activity cost pools, one for each department. The additional information you have collected is as follows: 26:36 Activity Cost Pool IT Support Admin Support Facilities Support Assurance Tax Advisory Cak Business Advisory IT time Sales revenue Cost Driver (allocation base) Total professional time Assurance professional time Tax advisory professional time Business advisory professional time Allocation Base Quantity 17,400 hours $ 69.64 million 24,870 hours 10,600 hours 9,100 hours. 7,600 hours Compute the predetermined allocation rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool IT Support Admin Support Facilities Support Assurance Tax Advisory Business Advisory Activity Rate per IT support hour % of sales revenue per hour of professional time per hour of assurance professional time per hour of tax advisory professional time per hour of business advisory professional me 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 IT time (hours) Sales revenue Client X client Y 510 310 $1,483,200 $988,800 Prou Dok 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 IT time (hours) Sales revenue Client X Client Y 510 310 $1,483,200 $988,800 Assign the costs to the two clients using activity-based costing. (Round intermediate calculations to 2 decimal places and finel answers to the nearest dollar amount.) IT Support Admin Support Facilities Support Assurance Tax Advisory Business Advisory Client X Client Y