The cost accountant determined $1,700,000 of the server network's costs were fixed and should be allocated based on the number of connections.The remaining costs should be allocated based on the time on the network.What is total server network costs allocated to the Retail Division assuming the company uses dual-rates to allocate common costs?
A)$741,667
B)$657,143
C)$425,000
D)$211,765

Question

Quizplus · Accepted Answer

The fixed costs are allocated based on the number of connections, and the remaining costs are allocated based on time on the network. The dual-rate method separates fixed and variable costs for allocation.

The Cost Accountant Determined $1,700,000 of the Server Network's Costs