Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

Mesa 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 $2,880,000. You have been provided with the following information for the upcoming year: Commercial Retail Consumer Connections 73,000 Time on Network (hours) 145,000 63,000 156,000 235,000 380,000 The cost accountant determined $1,930,000 of the server network's costs were fixed and should be allocated based on the number of connections. The remaining costs should be allocated based on the time on the network. What is total server network costs allocated to the Retail Division (rounded to the nearest whole dollar), assuming the company uses dual-rates to allocate common costs? Multiple Choice $127,654. $710,154. $573,750. $447,688.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we have to use dualrates to allocate the common costs We will break the total ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using QuickBooks Online For Accounting

Authors: Glenn Owen

3rd Edition

0357391691, 9780357391693

More Books

Students also viewed these Accounting questions

Question

What are the degrees of freedom associated with ????e.

Answered: 1 week ago

Question

Compare wages in Romania to wages in your home country.

Answered: 1 week ago

Question

Which were the causes of high employee turnover at Fomco Group?

Answered: 1 week ago