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Boxes-2-Go has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $3,045,000. You have
Boxes-2-Go has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $3,045,000. You have been provided with the following information for the upcoming year: |
Calls | Time on Network (hours) | ||||
Large | 77,500 | 115,000 | |||
Small | 67,500 | 220,000 |
What is the allocation rate for the upcoming year, assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls? |
A. $15.82
B. $11.71
C. $21.00
D. $9.09
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