Boxes-2-Go has two divisions,large and small,that share the common costs of the company's communications network.The annual common costs are $4,500,000.You have been provided with the following information for the upcoming year: What is the allocation rate for the upcoming year,assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls?
A)$10.00.
B)$15.00.
C)$20.00.
D)$25.00.

Question

Boxes-2-Go has two divisions,large and small,that share the common costs of the company's communications network.The annual common costs are $4,500,000.You have been provided with the following information for the upcoming year:  What is the allocation rate for the upcoming year,assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls?
A)$10.00. 
B)$15.00. 
C)$20.00. 
D)$25.00.

Quizplus · Accepted Answer

The Answer of Boxes-2-Go has two divisions,large and small,that share the common costs of the company's communications network.The annual common costs are $4,500,000.You have been provided with the following information for the upcoming year:  What is the allocation rate for the upcoming year,assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the number of calls?
A)$10.00. 
B)$15.00. 
C)$20.00. 
D)$25.00.

Boxes-2-Go Has Two Divisions,large and Small,that Share the Common Costs