Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the companys communications network, which are $8,300,000 a year. You have the following information about the two divisions and the common communications network:

	Calls (thousands)			Time on Network (hours)
Air express		504,000			335,000
Ground service		216,000			1,005,000

Required:

Determine the cost allocation if $5.81 million of the communications network costs are fixed and allocated on the basis of time on network, and the remaining costs, which are variable, are allocated on the basis of the number of calls. (Enter your answers in whole dollars. Do not round intermediate calculations.)

help

$ Fixed Variable Air Express Ground Service $ 5,810,000 $ 2,490,000 2,075,000 6,225,000 $ 7,885,000 $ 8,715,000 Total