Kentfield Advisory Services (KAS) is a large management consulting firm organized into two groups: Governmental Services (GS) and Commercial Support (CS) Corporate information technology (7) services support both groups. The cost of computer support is $47 million. The following information is given Governmental Services Comercial Support Variable Total Required: What is the cost allocation if fixed IT costs of $36.4 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. Governmental Services utilization 43N 57 OS Revenues (1000) 241,400 438,640 Commercial Support

Kentfield Advisory Services (KAS) is a large management consulting firm organized into two groups: Governmental Services (GS) and Commercial Support (CS) Corporate information technology (7) services support both groups. The cost of computer support is $47 million. The following information is given Governmental Services Comercial Support Variable Total Required: What is the cost allocation if fixed IT costs of $36.4 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. Governmental Services utilization 43N 57 OS Revenues (1000) 241,400 438,640 Commercial Support

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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