Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs ofthe company's computer server network. The annual common costs are $2,400,000. You have beenprovided with the following information for the upcoming year:CommercialRetailConsumerConnections$1,200,000.60,00080,000100,000Time on Network (hours)120,000150,000330,000Mesa Telcom uses the single rate method and allocates common costs based on the number ofconnections. What is the total computer server network cost allocated to the Commercial Division?$480,000.$514,286.$600,000.

W.note - 01 Calculation of Total No Connection Overhead Commercial 60,000.00…

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 $2,400,000. You have been provided with the following information for the upcoming year: Commercial Retail Consumer Connections 60,000 80,000 100,000 Time on Network (hours) 120,000 150,000 330,000 Mesa Telcom uses the single rate method and allocates common costs based on the number of connections. What is the total computer server network cost allocated to the Commercial Division?

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 $2,400,000. You have been provided with the following information for the upcoming year: Commercial Retail Consumer Connections 60,000 80,000 100,000 Time on Network (hours) 120,000 150,000 330,000 Mesa Telcom uses the single rate method and allocates common costs based on the number of connections. What is the total computer server network cost allocated to the Commercial Division?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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