Boxes-2-Go has two divisions, large and small, that share the common costs of the company's communications network.
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Question:
Boxes-2-Go has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $3,045,000. You have been provided with the following information for the upcoming year:
What is the allocation rate for the upcoming year, assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls?
A. $15.82
B. $11.71
C. $21.00
D. $9.09
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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