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 IT Support $ 286,000 Admin Support 718,000 Facilities Support 203,400 Revenue-Generating Departments Assurance 871,200 Tax Advisory 626,000 Business Advisory 794,100 $3,498,700 The existing cost allocation system is designed as follows: (1) the support department costs are allocated to the three revenue- generating departments, and (2) the revenue-generating department costs are allocated to individual clients. The support department costs are allocated to the revenue-generating departments as follows: (1) IT Support costs are allocated to Assurance, Tax Advisory, and Business Advisory using a 40:20:40 ratio, (2) Admin Support costs are allocated using a 50:20:30 ratio, and (3) Facilities Support costs are allocated using a 35:35:30 ratio. The costs accumulated in the three revenue-generating departments are allocated to individual clients based on the professional time consumed in the respective department. The Assurance, Tax Advisory, and Business Advisory departments recorded 10,200, 8,700, and 7,200 hours, respectively, for the quarter. Required: 1. Compute the predetermined cost allocation rates for the three revenue-generating departments. (Round your answers to 2 decimal places.) 3. Redo the company's income statement at the 6,080-unit level of activity using the contribution format MORRISEY & BROWN, LTD. Contribution Margin Income Statement For the Quarter Ended September 30 17:58 Sales in units k A$ Less: Variable expenses. A$ 0 Less: Fixed expenses A$ 0 2-b. Using the high-low method, state the cost formula for each mixed expense. -18:03 Y= A$ + + ok Y=A$ A$ + A$ + A$ XXX Y= A$ 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Variable Cost Fixed Cost $ A$ A$ A A A per unit per unit per unit A A A A$ 2S