Question: Barrington Box has two divisions large and small that share the common costs of the company's communication network. The Annual common costs are $4,800,000. You
Barrington Box has two divisions large and small that share the common costs of the company's communication network. The Annual common costs are $4,800,000. You have been provided with the following information for the upcoming year:
Calls Time on Network (hours)
Large 112,000 125,000
Small 80,000 275,000
The cost accountant determined $2,820,000 of the communication network's cost were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on network.
What is the total communication network costs allocated to the Large Box Division, assuming the company uses dual rates to allocate common costs A. $2,820,000 B. $2,536,250 C. $1,663,000 D. $2,263,750
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