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:

Elaborative Rehearsal

A way of increasing the number of retrieval cues for information by connecting new information with something that is already well known.

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it in short-term memory for longer periods.

Long-term Memory

A type of memory responsible for the storage of information over an extended period, ranging from several minutes to a lifetime.

Semantic Memory

Type of declarative memory containing general knowledge, such as knowledge of language and information learned in formal education.