Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the companys communications network, which are $8,200,000 a year. You have the following information about the two divisions and the common communications network:

Calls (thousands) Time on Network (hours)

Air express 588,000 337,500

Ground service 252,000 1,012,500

Required: Determine the cost allocation if $5.74 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. (Do not round intermediate calculations. Enter your answers in thousands of dollars.)

(Air Express, Ground Service)

Fixed:

Variable:

Total :