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Fenway Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are

Fenway Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $3,762,000. You have been provided with the following information for the upcoming year:

Connections Time on Network (hours)
Commercial 49,500 39,600
Retail 66,000 49,500
Consumer 82,500 108,900

Fenway Telcom uses the single rate method and allocates common costs based on the number of connections. What is the total computer server network cost allocated to the Commercial Division?

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