Exercise 12-39 (Algo) Single versus Dual Rates (LO 12-6, 7)

A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $13.67 million. The following information is given:

Required:

What is the cost allocation if fixed computer costs of $9.22 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.)

Exercise 12-39 (Algo) Single versus Dual Rates (LO 12-6, 7) A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $13.67 million. The following information is given: Gigabytes of Number of Storage Consultants 125 Corporate Government 97,000 59,880 170 Required: What is the cost allocation if fixed computer costs of $9.22 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.) Corporate Government Fixed Variable Total $ 0 $