Solution-Determine the cost allocation

Determine the cost allocation

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Question - Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $8,700,000 a year. You have the following information about the two divisions and the common communications network:

	Calls (thousands)	Time on Network (hours)
Air express	511,000	370,000
Ground service	219,000	1,110,000

Required - Determine the cost allocation if $5.22 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.

Reference no: EM132842950

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Determine the cost allocation : Determine the cost allocation if $5.22 million of the communications network costs are fixed and allocated on the basis of time on network

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Determine the cost allocation

Reference no: EM132842950

Reference no: EM132842950

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