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 $42 million. The following information is given: Governmental Services Commercial Support Fixed Variable Total Utilization 48% 52 Required: What is the cost allocation if fixed IT costs of $31.4 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 Revenues ($000) $ 234,300 425,700 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 (IT) services support both groups. The cost of computer support is $42 million. The following information is given: Governmental Services Commercial Support Fixed Variable Total Utilization 48% 52 Required: What is the cost allocation if fixed IT costs of $31.4 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 Revenues ($000) $ 234,300 425,700 Commercial Support

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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