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

question 83

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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The cost accountant determined $1,700,000 of the server network's costs were fixed and should be allocated based on the number of connections. The remaining costs should be allocated based on the time on the network. What is total server network costs allocated to the Retail Division (rounded to the nearest whole dollar) , assuming the company uses dual-rates to allocate common costs?

• A) $741,667.
• B) $657,143.
• C) $425,000.
• D) $211,765.

Comprehend the characteristics and applications of crystallized intelligence.

Differentiate between the thinking strategies of experts and novices, particularly in the use of formal procedures versus past experiences.

Identify the role of analytic intelligence in managing adulthood tasks.

Acknowledge the significance of superior strategies in experts for selective optimization with compensation.

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Definitions:

Customizing

The process of modifying products or services to meet specific customer demands or preferences.

Manufacturing Cost

The total expense incurred in the production of goods, including raw materials, labor, and overhead.

Predetermined Overhead Rates

Estimated overhead rates used to assign manufacturing overhead costs to products based on a pre-defined basis such as machine hours or labor hours.

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating overhead costs in manufacturing.