A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $13.11 million. The following information is given:

	Gigabytes of Storage			Number of Consultants
Corporate		92,200			135
Government		64,000			160

Required:

What is the cost allocation if fixed computer costs of $216 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? 

	Corporate	Government
Fixed
Variable
Total

Answer rating: 100% (QA)

Allocation of Cost of Computer Support Fixed Cost Cost allocated to Corporate Department 216000000 1... View the full answer