Question

A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost ofRequired A Required B Required C What is the cost charged to each department if the allocation is based on the number of gigaRequired A Required B Required C What is the cost charged to each department if number of consultants is the allocation basis

0 1
Add a comment Improve this question Transcribed image text
Answer #1

Cost allocation rate = Cost of computer support/ Total gigabytes

= 8,000,000/100,000

= $80 per gigabyte

Cost allocated to corporate = Gigabyte of storage x Cost of allocate rate

= 60,000 x 80
= $4,800,000

Cost allocated to Govemment =Gigabyte of storage x Cost of allocate rate

= 40,000 x 80

= $3,200,000

Cost Allocation
Corporate $4,800,000
Govemment 3,200,000

Cost allocation rate = Cost of compute support / Total number of consulation

= 8,000,000/350

= $22,857.1429 per consulation

Cost allocated to corporate = Number of consultation x Cost allocation rate

= 140 x 22,857.1429

= $3,200,000

Cost allocation to Govemment = Number of consultation x Cost allocation rate

= 210 x 22857.1429

= $4,800,000

Cost Allocation
Corporate $3,200,000
Govemment 4,800,000

Kindly comment if you need further assistance. Thanks‼!

Add a comment
Know the answer?
Add Answer to:
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The co...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A consulting firm has two departments, Corporate and Government. Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $11.24 million. The following information is given: Gigabytes of Storage Number of Consultants Corporate 105,000 135 Government 58,200 175 Required: What is the cost allocation if fixed computer costs of $7.31 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...

  • A consulting firm has two departments, Corporate and Government. Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $9.51 million. The following information is given: Gigabytes of Number of Consultants Storage 98,800 55,300 Corporate 130 170 Government Required: What is the cost allocation if fixed computer costs of $6.67 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...

  • A consulting firm has two departments, Corporate and Government. Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $8.99 million. The following information is given: Gigabytes of Storage 95,700 65,200 Number of Consultants Corporate Government 130 190 Required: What is the cost allocation if fixed computer costs of $6.28 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...

  • A consulting firm has two departments, Corporate and Government, Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government, Computer support is common to both departments. The cost of computer support is $8.29 milion. The following information is given: Gigabytes of Storage 91,400 54,400 Number of Consultants Corporate Government 155 170 Required: What is the cost allocation if fixed computer costs of $5.23 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...

  • A consulting firm has two departments, Corporate and Government. Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $6.76 million. The following information is given: Gigabytes of Storage Number of Consultants Corporate 98,000 155 Government 52,600 160 Required: What is the cost allocation if fixed computer costs of $5.60 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...

  • A consulting firm has two departments, Corporate and Government. Computer support is common to both departments....

    A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $11.50 million. The following information is given: Gigabytes of Storage Number of Consultants Corporate 102,800 135 Government 43,800 175 Required: What is the cost allocation if fixed computer costs of $7.72 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...

  • Seattle Partners provides management consulting Services to government and corporate clients. Seattle has two support departments...

    Seattle Partners provides management consulting Services to government and corporate clients. Seattle has two support departments administrative services (AS) and information systems (S) and two operating departmenis gaverrment consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Seattle's cost records indicate the following: Click the icon to view the cost records.) Read the rccuircments. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and...

  • Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative...

    Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems (IS)—and two operating departments-government consulting (GOVT) and corporate consulting RP). For the first quarter of 2017, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) (CORP). Po Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round...

  • Manhattan Partners provides management consulting Services to government and corporate clients Manhattan has two support departments...

    Manhattan Partners provides management consulting Services to government and corporate clients Manhattan has two support departments administrative services (AS) and information systems (15) and two operating departments government consulting (GOT) and corporate consulting (CORP) For the first quarter of 2017. Manhattan's cost records indicate the following 11. Click the icon to view the cost records) The two support department costs have been allocated to the two operating departments in the direct method and the p-down method (AS department and the...

  • Manhattan Partners provides management consulting services to government and corporate clients. Concord has two support departments---administrative services​ (AS) and information system ​(IS)---and t...

    Manhattan Partners provides management consulting services to government and corporate clients. Concord has two support departments---administrative services​ (AS) and information system ​(IS)---and two operating departments---government consulting​ (GOVT) and corporate consulting​ (CORP). For the first quarter of 2017, Manhattan's cost records indicate the​ following: SUPPORT OPERATING AS IS GOVT CORP Total Budgeted overhead costs before any interdepartment cost allocations $390,000 $3,600,000 $8,750,000 $12,540,000 $25,280,000 Support work supplied by AS (budgeted head count) --- 20% 48% 32% 100% Support work supplied by...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT