2 taran question

g Enabled: Assignment 2 i Saved Help Save & Exit KV Accounting and Business Consultants provides a variety of consulting services to a diverse range of clients. The company has three support departments and three revenue-generating departments, whose cost details for a typical quarter are presented below: Support Departments $ 292,000 IT Support Admin Support 726,000 Facilities Support 207, 200 Revenue-Generating Departments Assurance 887,600 Tax Advisory 638,000 Business Advisory 806,500 $3,557,300 The existing cost allocation system is designed as follows: (1) the support department costs are allocated to the three revenue- generating departments, and the revenue-generating departr Jal clients. The support department costs are allocated to the revenue-generating departments as follows: (1) IT Support costs are allocated to Assurance, Tax Advisory, and Business Advisory using a 30:30:40 ratio. (2) Admin Support costs are allocated using a 50.20.30 ratio, and (3) Facilities Support costs are allocated using a 35:35:30 ratio. The costs accumulated in the three revenue-generating departments are allocated to individual clients based on the professional time consumed in the respective department. The Assurance, Tax Advisory, and Business Advisory departments recorded 10.600, 9,100, and 7,600 hours, respectively, for the quarter. Required: 1. Compute the predetermined cost allocation rates for the three revenue-generating departments. (Round your answers to 2 decimal places.) Predetermined Cost Allocation Rate Assurance Tax Advisory Business Advisory 2 of 4 Next > 02:24:41 eBook Mc Graw