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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 $1,045,000. 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 $1,045,000. You have been provided with the following information for the upcoming year:
Calls | Time on Network(hours) | |
Large | 52,500 | 65,000 |
Small | 42,500 | 170,000 |
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 time on the network?
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