Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,680,000. You have been provided with the following information for the upcoming year. Large Small Calls 117,000 78,000 The cost accountant determined $2,800,000 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 total communication network costs allocated to the Small Box Division, assuming the company uses dual-rates to allocate common costs? Multiple Choice $2,248,000 $1,880,000 $859,692 Time on Network (hours) 144,000 216,000 $1,388,308

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,680,000. You have been provided with the
following information for the upcoming year:
Large
Small
Calls
117,000
78,000
The cost accountant determined $2,800,000 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 total communication network costs allocated to the Small Box Division, assuming the company uses dual-rates to allocate common costs?
Multiple Choice
$2,248,000
$1,880,000
$859,692
Time on Network (hours)
144,000
216,000
$1,388,308
Transcribed Image Text:Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,680,000. You have been provided with the following information for the upcoming year: Large Small Calls 117,000 78,000 The cost accountant determined $2,800,000 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 total communication network costs allocated to the Small Box Division, assuming the company uses dual-rates to allocate common costs? Multiple Choice $2,248,000 $1,880,000 $859,692 Time on Network (hours) 144,000 216,000 $1,388,308
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