**Bartolo Delivery Cost Allocation****Scenario:**Bartolo Delivery has two divisions: air express and ground service. Both divisions share the common costs of the company's communications network, totaling $8,200,000 annually. The distribution of these costs can be based on two potential allocation bases: the number of calls or the time on the network.**Data Available:**| | **Calls (thousands)** | **Time on Network (hours)** ||----------------------|-----------------------|-----------------------------|| **Air express** | 581,000 | 362,500 || **Ground service** | 249,000 | 1,087,500 |**Tasks:**a. Calculate the communications network cost charged to each division using the number of calls as the allocation basis.b. Calculate the communications network cost charged to each division using time on the network as the allocation basis.**Instructions:**- Enter your responses in the tabs below the respective requirements.- Use the data provided and do not round intermediate calculations.**Interactive Components:**Tabs are available for input under each requirement:- **Required A**: Input for costs based on the number of calls.- **Required B**: Input for costs based on network time.Each division (Air express and Ground service) has a field for entering the calculated network cost based on the selected allocation basis. **Bartolo Delivery Cost Allocation Problem**Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,200,000 a year. You have the following information about the two divisions and the common communications network:| Division | Calls (thousands) | Time on Network (hours) ||-----------------|-------------------|-------------------------|| Air Express | 581,000 | 362,500 || Ground Service | 249,000 | 1,087,500 |**Required:**a. What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis?b. What is the communications network cost to each division using time on network as the allocation basis?**Instructions:**Complete this question by entering your answers in the tabs below.- **Required A**- **Required B****Required A Question:**Calculate the communications network cost charged to each division if the number of calls is used as the allocation basis.**Required B Question:**Calculate the communications network cost to each division using time on network as the allocation basis. *(Do not round intermediate calculations.)*| Division | Network Cost ||----------------|--------------|| Air Express | || Ground Service | |< Back to Required A Next to Required B >

The question requires to calculate the network cost for each division based on the allocation basis…

Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,200,000 a year. You have the following Information about the two divisions and the common communications network. Air express Ground service Calls (thousands) 581,000 249,000 Time on Network (hours) 362,500 1,087,500 Required: a. What is the communications network cost that is charged to each division of the number of calls is used as the allocation basis? b. What is the communications network cost to each division using time on network as the allocation basis?

Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,200,000 a year. You have the following Information about the two divisions and the common communications network. Air express Ground service Calls (thousands) 581,000 249,000 Time on Network (hours) 362,500 1,087,500 Required: a. What is the communications network cost that is charged to each division of the number of calls is used as the allocation basis? b. What is the communications network cost to each division using time on network as the allocation basis?

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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