A consulting firm has two departments. Corporate and Government. Computer suppor

Question

A consulting firm has two departments. Corporate and Government. Computer support is common to both departments. The cost of computer support is $2.44 million. The following information is given: What is the cost allocation if fixed computer costs of $1.92 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of storage used by the department? (Do not round intermediate calculations. Round final answers to the nearest dollar amounts.)

Explanation / Answer

gigabytes of storage consultant corporate 38700 170 government 25900 78 total 64600 248 corporate government fixed 1920000 1316129 603871 variable 520000 311517 208483 2440000 1627646 812353.9 2440000

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