Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 22

Single versus Dual Rates
Using the data for the consulting firm in Exercise 12-22, what is the cost allocation if fixed computer costs of $2 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