Exercise $12-40($Static$)$ Single versus Dual Rates $($LO $12-5,6)$

Kentfield Advisory Services $($KAS$)$ is a large management consulting firm organized into two groups: Governmental Services $($GS$)$ and Commercial Support $($CS$).$ Corporate information technology $($IT$)$ services support both groups. The cost of computer support is $$33$ million. The following information is given:

$$UtilizationRevenues $($$$000)$Governmental Services$57\%$$ $221,520$Commercial Support$43402,480$

Required:

What is the cost allocation if fixed IT costs of $$22\mathrm{.}4$ million are allocated on the basis of utilization and the remaining costs $($all variable$)$ are allocated on the basis of group revenues?

Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.