Boxes-2-Go has two divisions, large and small, that share the common costs of the company's communications network.

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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 $3,300,000. You have been provided with the following information for the upcoming year:
Boxes-2-Go has two divisions, large and small, that share the

The cost accountant determined $1,980,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is total communication network costs allocated to the Small Box Division, assuming the company uses dual-rates to allocate common costs?

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Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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