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?
A)$2,700,000
B)$2,520,000
C)$1,980,000
D)$1,500,000

Question

Quizplus · Accepted Answer

The fixed costs of $2,700,000 are allocated based on the number of calls, and the remaining costs are allocated based on time. The question implies that the total costs allocated to the Large Box Division, considering both fixed and variable components, is $1,980,000.

The Cost Accountant Determined $2,700,000 of the Communication Network's Costs