4. value: 1.50 points Required information What is the allocation rate for the u

Question

4.

value:
1.50 points

Required information

What is the allocation rate for the upcoming year assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls?

$10.00

$15.00

$20.00

$25.00

5.

value:
1.50 points

Required information

The cost accountant determined $2,700,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is the total communication network costs allocated to the Large Box Division assuming the company uses dual-rates to allocate common costs? (Do not round intermediate calculation.)

$2,700,000

$2,520,000

$1,980,000

$1,500,000

Time on Network (hours Large Small 100,000 80.000 120,000 330,000

Explanation / Answer

Step 1 of 2: What is the allocation rate for the upcoming year assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls.

Step 2 of 2: What is the total communication network costs allocated to the Large Box Division assuming the company uses dual-rates to allocate common costs.

Sl No Particulars Amount a Annual common costs $4,500,000 b Total number of Calls (100,000+80,000) 180,000 c Allocation rate using the single-rate method $25

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