Talent Engineering Has Two Divisions,Research and Sales,that Share the Common

question 143

Essay

Talent Engineering has two divisions,Research and Sales,that share the common costs of the company's communications network.The annual common costs are $2,250,000.You have been provided with the following information for the upcoming year: $$\begin{array} { | l | r | r | } \hline & \text { Calk } & \begin{array} { r } \text { Time on } \\\text { Network (hours) }\end{array} \\\hline \text { Research } & 50,000 & 60,000 \\\hline \text { Sales } & 40,000 & 165,000 \\\hline\end{array}$$
Required (use three decimal places in your calculations):
The cost accountant determined $1,350,000 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 each division?

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Definitions:

Cash

Money in the form of coins or banknotes, especially that held by an organization or individual.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year with its current assets.

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered or used on credit but not yet paid for.

Long-Term Note Payable

A liability representing borrowed money that is due for repayment beyond the next twelve months from the balance sheet date.