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Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,700,000 a year.
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's 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) 602,000 258,000 Time on Network (hours) 360,000 1,080,000 Air express Ground service 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 Air express Ground service Network Cost b. What is the communications network cost to each division using time on network as the allocation basis? (Do not round intermediate calculations.) Division Air express Ground service Network Cost
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