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This is the first time using this system so I am going to givethe problem as it

ID: 2502200 • Letter: T

Question

This is the first time using this system so I am going to givethe problem as it is stated in the book. I need all of the help Ican possibly get. If someone could give me a similar example orjust lead me in the right direction it would be greatlyappreciated. Scenario: Mackinzie Consulting computes the cost of each consultingengagment by adding a portion of firmwide support costs to thelabor costs of the consultants on the engagment. The support costsare assigned to each consulting engagment using a cost driver ratebased on consulting labor costs. Mackinzie Consulting's supportcosts are $5 million per year, and total consultant labor cost isestimated at $2.5 million per year. Questions: What is Mackinzie Consulting's support costdriver rate? If the consultant labor cost on an engagment is $25,000, whatcost will Mackinzie Consulting compute as the total costs of theconsulting engagment? This is the first time using this system so I am going to givethe problem as it is stated in the book. I need all of the help Ican possibly get. If someone could give me a similar example orjust lead me in the right direction it would be greatlyappreciated. Scenario: Mackinzie Consulting computes the cost of each consultingengagment by adding a portion of firmwide support costs to thelabor costs of the consultants on the engagment. The support costsare assigned to each consulting engagment using a cost driver ratebased on consulting labor costs. Mackinzie Consulting's supportcosts are $5 million per year, and total consultant labor cost isestimated at $2.5 million per year. Questions: What is Mackinzie Consulting's support costdriver rate? If the consultant labor cost on an engagment is $25,000, whatcost will Mackinzie Consulting compute as the total costs of theconsulting engagment?

Explanation / Answer

THANK YOU CHIPPY!

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