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Mesa Telcom Has Three Divisions, Commercial, Retail, and Consumer, That

question 7

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Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year:
 Connections  Time on Network (hours)   Commercial 60,000120,000 Retail 80,000150,000 Consumer 100,000330,000\begin{array} { | l | r | r | } \hline & \text { Connections } &{ \text { Time on Network (hours) } } \\\hline \text { Commercial } & 60,000 & 120,000 \\\hline \text { Retail } & 80,000 & 150,000 \\\hline \text { Consumer } & 100,000 & 330,000 \\\hline\end{array}
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What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the number of connections?

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