Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the companys communications network, which are $8,100,000 a year.
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the companys communications network, which are $8,100,000 a year. You have the following information about the two divisions and the common communications network.
Calls (thousands) | Time on Network (hours) | |||||
Air express | 511,000 | 337,500 | ||||
Ground service | 219,000 | 1,012,500 | ||||
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started