Bartolo Delivery has two divisions, air express and ground service, that share the common costs...
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Accounting
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,400,000 a year. You have the following information about the two divisions and the common communications network: Air express Ground service Calls (thousands) 504,000 216,000 Time on Network (hours) 355,000 1,065,000 Required: Determine the cost allocation if $5.88 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.) Air Express Ground Service Fixed Variable Total
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