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 typicai quarter are presented below: Support Departments IT Support 5 286,896 Admin Support 718,896 Facilities Support 283,466 RevenueGenerating Departments Assurance 871,299 Tax Advisory 626, 896 Business Advisory 794,196 eBook $3,493,796 The existing cost allocation system is designed as follows: (1) the suppozt department costs are ailocated 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 revenuegenerating departments as follows: (1) [T 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 tatio. 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. Required: 1. Compute the predetermined cost allocation rates for the three revenue-generating departments. (Round your answers to 2 decimal places.) nuvmvu, uyyulullhllw luuuluuu .u,r_vu, v.1 uv. mum \"Luv \"yum, Ihopnyuuyljy n4. u no quulnul. 2 Required: 1. Compute the predetermined cost allocation rates for the three revenue-generating departments. (Round your answers to 2 decimal places.) Assurance Tax Advisory eBook 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 dollar.) Assurance Service Tax Advisory Service Business Advisory Service eBook 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: _ cost Brive'r Activity Cost Fool (allocation base) IT Support Admin Support Facilities Support Assurance Tax Advisory Business Advisory IT time Sales revenue Total professional time Assurance professional time Tax advisory professional time Business advisory professional time Alloc'atim- ease 'gja'ntity 16 ,sae hours $ 69.58 million 24,276 hours 16, 299 hours 8,786 hours 7, 266 hours Compute the predetermined allocation rate for each activity cost pool. (Round your answers to 2 decimal places.) IT Support per IT support hour Admin Support % of sales revenue Facilities Support per hour of professional time Assurance per hour of assurance professional time Tax Advisory per hour of tax advisory professional time Business Advisory per hour of business advisory professional time Business Advisory per hour of business advisory professional time 2 8 02:21:54 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 X Client Y eBook IT time (hours) 470 270 Sales revenue $1, 472, 400 $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