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Bartolo Delivery has two divisions, alr express and ground service, that share the common costs of the company's communications network, which are $8,300,000 a year.
Bartolo Delivery has two divisions, alr express and ground service, that share the common costs of the company's communications network, which are $8,300,000 a year. You have the following Information about the two divisions and the common communications network. Time on Network (hours) 345,000 1,835,000 Calls (thousands) 546, eee 234,00 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? 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 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 Bartolo Delivery has two divisions, alr 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: Time on Network (hours) 347,500 1,642,500 Calls (thousands) 553,000 237,000 Air express Ground service Required: Determine the cost allocation if $6.09 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.) Air Express Ground Service Fixed Variable Total SOS
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