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Question - A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $12.16 million. The following information is given:
Gigabytes of Storage
Number of Consultants
Corporate
87,900
135
Government
51,200
150
Required - What is the cost allocation if fixed computer costs of $8.51 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?
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