Question
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
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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 $2,400,000. You have been provided with the following information for the upcoming year:
Connections Time on Network (hours) Commercial 60,000 120,000 Retail 80,000 150,000 Consumer 100,000 330,000
What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the number of connections?
$40.00.
$10.00.
$15.00.
$20.00.
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 $2,400,000. You have been provided with the following information for the upcoming year:
| Connections | Time on Network (hours) | |
| Commercial | 60,000 | 120,000 |
| Retail | 80,000 | 150,000 |
| Consumer | 100,000 | 330,000 |
What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the number of connections?
| $40.00. | ||
| $10.00. | ||
| $15.00. | ||
| $20.00. |
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Accounting
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
28th Edition
1337902683, 978-1337902687
