Exercise 12-39 (Algo) Alternative Allocation Bases-Ethical Considerations (LO 12-5) 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 $49 million. The following information is given: Governmental Services Commercial Support Utilization 41% 59 Revenues ($000) $ 244,240 443,760 Required: a. What is the cost charged to each group if the allocation is based on the utilization? b. What is the cost charged to each group if revenue is the allocation basis? c. Most of the business in Commercial Support is priced on a fixed fee basis, and most of the work in the Governmental Services Department is priced on a cost-plus fixed fee basis. Will the allocation base selected affect the amount of revenue?
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- Exercise 12-40 (Algo) Single versus Dual Rates (LO 12-5, 6) 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 $48 million. The following information is given: Governmental Services Commercial Support Utilization 42% 58 Revenues (5000) $ 242,820 441,180 Required: What is the cost allocation if fixed IT costs of $37.4 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.A consulting company has two departments, Corporate and Government. Conputer support is common to both departments. The cost of computer support is $9 million. Gigabytes Storage # of Consultants corporate 97,500 135 Government 52,500 165 Most of the business in the Corporate Department is priced on a fixed fee basis, while most of the Government Department is priced on a cost-plus fixed fee basis.Will this affect the choice of the allocation base?Should it?help now please. ! Required information [The following information applies to the questions displayed below] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income Less: Target income Residual income (loss) $ Income $ 6,350,000 1,806,000 1,100,000 $ Compute return on investment for each investment center. Which center performed the best based on return on investment? A 3 Cameras 6,350,000 $ 3,444,000 (2,906,000) $ Average Assets $ 28,700,000 12,900,000 17,000,000 Phones Ĉ 1,806,000 $ 216,720 (1,589,280) $ Computers 1,100,000 132,000 (968,000)
- Required information [The following information applies to the questions displayed below] The following Information is provided for each Investment Center Investment Center Cameras Phones Computers Compute return on Investment for each Investment center. Which center performed the best based on return on investment? Return on Performance Investment Based on ROI Income $6,500,000 2,652,000 850,000 Complete this question by entering your answers in the tabs below. Inve Average Assets $ 29,300,000 22,100,000 14,800,000 Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Return on Investment Cameras Phones Computers Income Average Accato $ 6,500,000 $ 29,300,000 2,652,000 22,100,000 850,000 14,800,000The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $5,200,000 2,436,000 1,000,000 Average Assets $ 29,000,000 20,300,000 19,800,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Income Average Assets Return on Investment Cameras $ 5,200,000 $ 29,000,000 % Phones Computers 2,436,000 1,000,000 20,300,000 % 19,800,000 %! Required information [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Compute return on investment for each investment center. Which center performed the best based on return on investment? Performance Return on Investment Based on ROI Income $ 6,000,000 2,295,000 1,050,000 Complete this question by entering your answers in the tabs below. Investment Center Average Assets $ 26,900,000 15,300,000 13,600,000 Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Cameras Phones Computers Income Average Assets $ 6,000,000 $ 26,900,000 2,295,000 15,300,000 1,050,000 13,600,000
- Required information. [The following information applies to the questions displayed below) The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 4,500,000 1,500,000 800,000 Average Assets $ 20,000,000 12,500,000 10,000,000 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Cameras Phones Computers Income $ 4,500,000 $ 1,500,000 800.000 Average Assets 20,000,000 12,500,000 Return on Investment % % 10,000,000 %Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,400,000 2,145,000 900,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Investment Center Average Assets $ 29,600,000 16,500,000 15,200,000 Complete this question by entering your answers in the tabs below. Cameras Phones Computers Performance Return on Investment Based on ROI Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Average Assets $ 29,600,000 16,500,000 15,200,000 Answer is complete but not entirely correct. Income $ 6,400,000 2,145,000 900,000 Return on Investment 2.2 X % 0.2 X % 5.9 %
- A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $9 million. The following information is given: Gigabytesof Storage Numberof Consultants Corporate 97,500 135 Government 52,500 165 Required: What is the cost allocation if fixed computer costs of $7 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? (Enter your answers in dollars, not in millions. Do not round intermediate calculations.)Exercise 12-40 (Algo) Single versus Dual Rates (LO 12-5, 6) 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 $48 million. The following information is given: Governmental Services Commercial Support Fixed Variable Total Required: What is the cost allocation if fixed IT costs of $37.4 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 42% 58 0 $ Commercial Support Revenues ($000) $ 242,820 441,180 0EX2-7 (Algo) The Custom Bike Company... The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Following are five projects under consideration. Criteria Weight Project 1 Project 2 Project 3 Project 4 Project 5 Strong sponsor Project 1 Project 2 Project 3 Project 4 Project 5 2 4355 AN 4 2 Supports business strategy 1 0 10 5 7 0 Urgency 3 52472 10% of sales from new products 3 76770 Using the scoring matrix above, what score would you give to each project? Competition Fill market gap 4 2 2 10 0 6 10 1 7