Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the companys communications network, which are $8,700,000 a year. You have the following information about the two divisions and the common communications network:

	Calls (thousands)			Time on Network (hours)
Air express		546,000			367,500
Ground service		234,000			1,102,500

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? (Do not round intermediate calculations.)

Division	Network Cost
Air Express	??????
Ground Service	??????

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	??????