A Company has two divisions, one large and one small. They share the common costs...
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Accounting
A Company has two divisions, one large and one small. They share the common costs of the company's communication network. The annual common costs are $6,300,000. You've been provided with the following information for the coming year:
CallsTime on Network (Hours)
Large 300,000 380,000
Small 120,000 550,000
What is the allocation rate for the upcoming year, assuming A Company uses the single-rate method and allocated common costs based on the number of calls ?
A) 12.50
B) 10.00
C) 18.00
D) 15.00
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