What is the cost allocation

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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?

Reference no: EM133160342

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