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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A2
Transcribed Image Text:Kentfield Advisory Services (KAS) is a large management consulting firm organized into two groups: Governmental Services (GS) and
Commercial Support (CS). Corporate information technology (T) services support both groups. The cost of computer support is $47
million. The following information is given
Governmental Services
Commercial Support
Fixed
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
43%
57
05
Revenues
(5000)
$ 241,400
438,640
Commercial
Support
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education