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

question 68

Multiple Choice

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 the total server network costs allocated to the Commercial Division assuming the company uses dual-rates to allocate common costs?

• A)$514,286
• B)$480,000
• C)$600,000
• D)$565,000

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Definitions:

Starter Relay

An electrical device that transmits power to the starter motor, initiating the engine's operation in a vehicle.

Starter Solenoid

An electromagnetic switch that engages the starter motor of a vehicle, initiating the engine's starting process.

Pinion Gear

A small gear that engages with a larger gear or rack, often used in automotive differentials to transfer rotational motion.

Flywheel Ring Gear

A circular gear attached to the outer edge of a flywheel, interfacing with the starter motor to begin engine rotation.