Question

Exercise 12-40 (Algo) 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 $48 million. The following Information is given: Utilization Revenues ($000) Governmental Services Commercial Support 42% 58 $ 242,820 441,180 Required: What is the cost allocation if fixed IT costs of $37.4 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. Fixed Variable Total Governmental Services Commercial Support $ 0 $ 0

          Exercise 12-40 (Algo) 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 $48
million. The following Information is given:
Utilization Revenues ($000)
Governmental Services
Commercial Support
42%
58
$ 242,820
441,180
Required:
What is the cost allocation if fixed IT costs of $37.4 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.
Fixed
Variable
Total
Governmental
Services
Commercial
Support
$
0
$
0

Exercise 12-40 (Algo) 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 48
million. The following Information is given:
Utilization Revenues (000)
Governmental Services
Commercial Support
42%
58
242,820
441,180
Required:
What is the cost allocation if fixed IT costs of37.4 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.
Fixed
Variable
Total
Governmental
Services
Commercial
Support
0
0

Added by Russell S.

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