What is the allocation rate for the upcoming year assuming Fenway Telcom uses the single-rate method and allocates common costs based on the number of connections?
A)$10.00
B)$15.00
C)$20.00
D)$40.00

Question

Quizplus · Accepted Answer

The allocation rate is calculated by dividing the total common costs by the number of connections. In this case, the total common costs are $40,000 and the number of connections is 4,000. Therefore, the allocation rate is $40,000 / 4,000 = $10.00.

What Is the Allocation Rate for the Upcoming Year Assuming