Alternative allocation bases service lo 12-6 packages-2-go, Ask an Expert

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Alternative Allocation Bases: Service (LO 12-6) Packages-2-Go has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $4,970,000 a year. You have the following information about the two divisions and the common communications network: Calls (thousands) Time on Network (hours) Air express 147,000 123,000 Ground service 103,000 498,000 Required: (a) What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? What is the communications network cost to each division using time on network as the allocation basis?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91959344

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