Woodrow Economic Advisors (WEA) is a for-profit consulting firm, which offers economic analyses and policy recommendations. WEA is organized into two divisions. The Commercial Division and the Defense Division. Commercial clients are charged a fixed fee negotiated at the beginning of the engagement. The Defense Division has only two clients, the U.S. Department of Defense and the National Aeronautics and Space Administration (NASA). Defense Division business is charged based on the total costs (direct and indirect) of an engagement plus a 15 percent fee (profit). During the planning process for the following year, the controller at WEA has estimated costs for the two divisions. The controller expects indirect costs to total $6,370,000 next year. Revenues from Corporate clients next year are expected to be $3 million. Required: a. Suppose WEA chooses to allocate indirect cost based on direct cost. 1. What cost would be allocated to the two units (Commercial and Defense)? 2. What total revenue would they expect to collect next year? b. Suppose WEA chooses to allocate indirect cost based on direct contract hours worked. 1. What cost would be allocated to the two units (Commercial and Defense)? 2. 2. What total revenue would they expect to collect next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Suppose WEA chooses to allocate indirect cost based on direct cost. 1 . What cost would be allocated to the two units (Commercial and Defense)? 2. What total revenue would they expect to collect next year? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Suppose WEA chooses to allocate indirect cost based on direct contract hours worked. 1. What cost would be allocated to the two units (Commercial and Defense)? 2. What total revenue would they expect to collect next year? Note: Do not round intermediate calculations