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

question 137

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:
$$\begin{array} { | l | r | c | } \hline & { \text { Calls } } &{ \text { Time on Network (hours) } } \\\hline \text { Large } & 100,000 &120,000 \\\hline \text { Small } & 80,000 & 320,000 \\\hline\end{array}$$

-
The cost accountant determined $2,700,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is the total communication network costs allocated to the Large Box Division, assuming the company uses dual-rates to allocate common costs?

• A) $2,700,000.
• B) $2,520,000.
• C) $1,980,000.
• D) $1,500,000.

---

Definitions:

Same-Sex Couples

Romantic partnerships between two individuals of the same sex, whether married or in a committed relationship.

Heterosexual Couples

Heterosexual couples are partnerships between individuals of the opposite sex, traditionally involving romantic or sexual relationships.

Increase

A rise in the quantity, size, or extent of something.

Decrease

A reduction in size, quantity, quality, or intensity.