Using the data for the consulting firm in Exercise 12-38, what is the cost allocation if fixed computer costs of $7 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?

Exercise 12-38

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Gigabytes of Storage Number of Consultants Corporate 97,500 135 Government 52,500 165