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 $1,045,000. 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 $1,045,000. You have been provided with the following information for the upcoming year:

Calls Time on Network(hours)
Large 52,500 65,000
Small 42,500 170,000

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 time on the network?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!