Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $8,100,000 a year. You have the following information about the two divisions and the common communications network: Calls (thousands) Time on Network (hours) Air express 623,000 337,500 Ground service 267,000 1,012,500 Required: Determine the cost allocation if $5.67 million of the communications network costs are fixed and allocated on the basis of time on network, and the remaining costs, which are variable, are allocated on the basis of the number of calls. (Enter your answers in whole dollars. Do not round intermediate calculations.)

Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $8,100,000 a year. You have the following information about the two divisions and the common communications network: Calls (thousands) Time on Network (hours) Air express 623,000 337,500 Ground service 267,000 1,012,500 Required: Determine the cost allocation if $5.67 million of the communications network costs are fixed and allocated on the basis of time on network, and the remaining costs, which are variable, are allocated on the basis of the number of calls. (Enter your answers in whole dollars. Do not round intermediate calculations.)

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 2.3C

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