Barrington Box Enterprises Has Two Divisions, Large and Small, That

question 138

Multiple Choice

Barrington Box Enterprises 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:
$$\begin{array} { | l | r | c | } \hline & { \text { Calls } } &{ \text { Time on Network (hours) } } \\\hline \text { Large } & 100,000 &120,000 \\\hline \text { Small } & 80,000 & 320,000 \\\hline\end{array}$$
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What is the allocation rate for the upcoming year, assuming Barrington Box 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.

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Definitions:

E-Sign Act

A federal law enacted in 2000 that facilitates the use of electronic records and signatures in commerce by ensuring their validity and legal effect.

Electronic Signature

A digital form of a signature that legally binds an individual to an electronic document, as recognized by law.

UETA

The Uniform Electronic Transactions Act, which establishes the legal validity of electronic signatures and records.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform set of rules for the international sale of goods.