Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communicationsnetwork, which are $8,200,000 a year. You have the following information about the two divisions and the common communicationsnetwork.Air expressGround serviceRequired ACalls(thousands)581,000249,000Required: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?Complete this question by entering your answers in the tabs below.DivisionAir expressGround serviceTime on Network(hours)Required B362,5001,087,500What is the communications network cost that is charged to each division if the number of calls is used as the allocationbasis? (Do not round intermediate calculations.)Network Cost< Required ARequired B > Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communicationsnetwork, which are $8,200,000 a year. You have the following Information about the two divisions and the common communicationsnetwork.Air expressGround serviceCalls(thousands)581,000249,000Required: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?Complete this question by entering your answers in the tabs below.Required A Required BDivisionTime on Network(hours)362,5001,087,500What is the communications network cost to each division using time on network as the allocation basis? (Do not roundintermediate calculations.)Air expressGround serviceNetwork Cost< Required ARequired 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?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,400,000 a year. You have the following information about the two divisions and the common communications network. Air express Ground service Calls (thousands) 504,000 216,000 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? Complete this question by entering your answers in the tabs below. Required A Required B Division Time on Network (hours) 350,000 1,050,000 What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? (Do not round intermediate calculations.) Air express Ground service Network Cost
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