Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annualcommon costs are $4,420,000. You have been provided with the following information for the upcoming year:CallsTime on Network (hours)Large101,000110,000Small69,000230,000The cost accountant determined $2,720,000 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 BoxDivision, assuming the company uses dual-rates to allocate common costs?

Allocation of Costs: Cost allocation is a way of giving alleviation to shared assistance…

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 $4,420,000. You have been provided with the following information for the upcoming year: Calls Time on Network (hours) Large 101,000 69,000 110,000 230,000 Small The cost accountant determined $2,720,000 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?

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 $4,420,000. You have been provided with the following information for the upcoming year: Calls Time on Network (hours) Large 101,000 69,000 110,000 230,000 Small The cost accountant determined $2,720,000 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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