A consulting firm has two departments, Corporate and Government. Computer support is common to both...
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Accounting
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $9 million. The following information is given:
Gigabytes of Storage
Number of Consultants
Corporate
97,500
135
Government
52,500
165
Required:
a. What is the cost charged to each department if the allocation is based on the number of gigabytes of storage? (Enter your answers in thousands of dollars.)
b. What is the cost charged to each department if number of consultants is the allocation basis? (Enter your answers in thousands of dollars.)
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