Please explain in detail how you reach each answer.

Problem 2-67 (Static) Cost Allocation and Pricing (LO 2-3) points Greenfield Consultants conducts analyses of public policy issues. The company has two units: Government with various US government agencies as the only clients) and Corporate with several corporations as clients). Government business is charged based on the total costs (direct and indirect) plus a 15 percent fee (profit). Corporate clients are charged a fixed fee negotiated at the beginning of the project. During the planning process for the following year the controller has estimated costs for the two units Direct to Direct contract hours worked Corporate Government $ 500,000 $2,000,000 1.000 2.000 Total $2,500,000 .000 The controller expects indirect costs to total $4,5 million next year Revenues from Corporate clients are expected to be $12 million Required: a. Suppose Greenfield chooses to allocate indirect cost based on direct cost. 1. What cost would be allocated to the two units (Corporate and Government)? 2. What total revenue would they expect to collect next year? b. Suppose Greenfield chooses to allocate indirect cost based on direct contract ours worked, 1. What cost would be allocated to the two units (Corporate and Government 2. What total revenue would they expect to collect next year Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B 4. WITOL III evene vuur ey CALELLWELTREAL yees Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. points Required A Required B 1. What cost would be allocated to the two units (Corporate and Government)? 2. What total revenue would they expect to collect next year? (Enter your answers in dollars and not in millions (.e., 2.34 million should be entered as 2,340,000). Round "percentage answers to 2 decimal places.) Show less Total 3,000 Corporate 1000 33.00 $ 1,485,000 33.00 % Direct contract hours Percentage Allocation of indirect cost Percentage Government 2,000 67.00 $ 3,015,000 67.00 100 $ 4,500,000 100 $ $ 2,000,000 3,015,000 5,015,000 Direct cost Allocated indirect cost Total cost Fixed fee (Corporate) Fixed fee (Government) Total revenue $ 1.200.000 $ 5,767 250 $ 10,782,250 $ 2,686,000 $13.468,250