Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year: Connections Time on Network (hours) Commercial 51,000 121,000 Retail 61,000 151,000 Consumer 108,000 378,000 What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network? Multiple Choice $4.40. $3.29. $23.64. $19.36.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year: Connections Time on Network (hours) Commercial 51,000 121,000 Retail 61,000 151,000 Consumer 108,000 378,000 What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network? Multiple Choice $4.40. $3.29. $23.64. $19.36.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year:
| Connections | Time on Network (hours) | |
| Commercial | 51,000 | 121,000 |
| Retail | 61,000 | 151,000 |
| Consumer | 108,000 | 378,000 |
What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network?
Multiple Choice
-
$4.40.
-
$3.29.
-
$23.64.
-
$19.36.
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