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What is the allocation rate for the upcoming year

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Question - Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year:

 

Connections

Time on Network (hours)

Commercial

51,000

121,000

Retail

61,000

151,000

Consumer

108,000

378,000

Required - What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the number of connections?

Reference no: EM132699074

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