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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

  1. 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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