Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common cost

of the company's computer server network. The annual common costsare $3,220,000. You have been provided with the following information for the upcoming year:

ConnectionsTime on Network (hours)

Commercial58,000164,000

Retail64,000237,000

Consumer110,000399,000

The cost accountant determined $2,300,000 of the server network's costs were xed and should be

allocated based on the number of connections. The remaining costsshould be allocated based on the time on the network.What is the total server network costs allocated to the Commercial Division, assuming the company uses dual-ratesto allocate common costs?