Bartolo Delivery has two divisions, air express and ground service, that share the common costs of...
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Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,000,000 a year. You have the following information about the two divisions and the common communications network: Air express Ground service Time on Network Calls (thousands) 490,000 210,000 (hours) 350,000 1,050,000 Required: a. What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? Division Network Cost Air express Ground service b. What is the communications network cost to each division using time on network as the allocation basis? Division Network Cost Air express Ground service Required: Determine the cost allocation if $5.2 million of the communications network costs are fixed and allocated on the basis of time on network, and the remaining costs, which are variable, are allocated on the basis of the number of calls. (Enter your answers in thousands of dollars.) Air Express Ground Service Fixed Variable $ 490,000 Total $ 490,000 $ 0 Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,000,000 a year. You have the following information about the two divisions and the common communications network: Air express Ground service Time on Network Calls (thousands) 490,000 210,000 (hours) 350,000 1,050,000 Required: a. What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? Division Network Cost Air express Ground service b. What is the communications network cost to each division using time on network as the allocation basis? Division Network Cost Air express Ground service Required: Determine the cost allocation if $5.2 million of the communications network costs are fixed and allocated on the basis of time on network, and the remaining costs, which are variable, are allocated on the basis of the number of calls. (Enter your answers in thousands of dollars.) Air Express Ground Service Fixed Variable $ 490,000 Total $ 490,000 $ 0
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