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

	Calls (thousands)			Time on Network (hours)
Air express		490,000			350,000
Ground service		210,000			1,050,000

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

What is the communications network cost to each division using time on network as the allocation basis? (Do not round intermediate calculations.)

Division	Network Cost
Air express
Ground service