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 $1,725,000. 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 $1,725,000. You have been provided with the following information for the upcoming year:

Calls Time on Network (hours)
Large 62,500 85,000
Small 52,500 255,000

The cost accountant determined $1,035,000 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 the total communication network costs allocated to the Large Box Division, assuming the company uses dual-rates to allocate common costs?

$562,500.

$735,000.

$1,035,000.

$990,000.

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