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

question 41

Multiple Choice

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:
$$\begin{array} { | l | r | r | } \hline & \text { Connections } & { \text { Time on Network (hours) } } \\\hline \text { Commercial } & 60,000 & 120,000 \\\hline \text { Retail } & 80,000 & 150,000 \\\hline \text { Consumer } & 100,000 & 330,000 \\\hline\end{array}$$
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Mesa Telcom uses the single rate method and allocates common costs based on the number of connections. What is the total computer server network cost allocated to the Commercial Division?

• A) $480,000.
• B) $514,286.
• C) $600,000.
• D) $1,200,000.

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Definitions:

Operating System

The software that manages all the hardware and other software on a computer, acting as an intermediary between users and the computer hardware.

Functionality

The set of actions or operations that something is designed or able to perform.

Process

A series of actions or steps taken in order to achieve a particular end, especially in the context of computing or manufacturing.

Unauthorized Users

Individuals who access a computer system or network without permission.