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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
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 $3,080,000. You have been provided with the following information for the upcoming year: Commercial Retail Consumer Connections 54,000 60,000 102,000 Time on Network (hours) 134,000 225,000 393,000 The cost accountant determined $2,140,000 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 the total server network costs allocated to the Commercial Division, assuming the company uses dual-rates to allocate common costs? Multiple Choice $652,642. $618,000
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