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Please bold final answer and type the answer in the chart in the prob. thanks. [The following information applies to the questions displayed below.] Lothrop

Please bold final answer and type the answer in the chart in the prob. thanks.
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[The following information applies to the questions displayed below.] Lothrop Security Group (LSG) provides consulting and security services to various clients, including government agencles and commercial firms. It has two operating departments, Government and Commercial. The Government Department handies contracts with federal and state organizations and Commercial serves the remaining customers. LSG is organized this way because of the differences in contractual arrangements. Government contracts call for a fee equal to the full cost of the job. Including allocated overhead plus a fixed profit amount. Other clients are charged based on the current market environment. LSG has two service departments, Contracts and information Systems (IS). Contracts Department costs are allocated based on number of contracts, and is costs are allocated based on employees. Selected percentage use data as well as departmental direct costs follow: Required: a. Suppose LSG allocated service department costs using the direct method. What is the amount of service department costs that will be allocated to each of the operating departments? Note: Do not round intermediate calculations. ard commerciab firms, It has two operating departments, Government-and Commercial. I he. Government Uepartment. handies contracts with federal and state organizations and Commercial serves the remalning customers. LSG is organized this way because of the differences in contractual arrangements. Govemment contracts call for a fee equal to the full cost of the job, including allocated owerhead plus a fored profit amount. Other clients are charged based on the cutrent maikel envitonment. LSG has two service departments, Contracts and information Systems (IS) Contracts Department costs are allocated based on number of contracts, and is costs are allocated based on employees. Selected percentage use-data as well as departmental direct costs follow; equired: . Suppose that, after tevirwing the results, the CFO tells the accountant to change the percentage of claselication of contracts so 50 percent is shown as used by ic Government Department and A0 percentis shown as used by the Commercial Department. Would this be ethical? Yes or 140

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