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 Calls Time on Network (hours) Large 77,500 115,000 Small 67,500 220,000 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

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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

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:

	Calls	Time on Network (hours)
	Calls	Time on Network (hours)
Large	77,500	115,000
Small	67,500	220,000

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

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