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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 $11.92 million. The following information is given:

Gigabytes of Storage Number of Consultants
Corporate 101,600 135
Government 50,300 170

Required:

What is the cost allocation if fixed computer costs of $9.46 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? (Do not round intermediate calculations. Enter your answers in thousands of dollars.)

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