Mesa Telcom Has Three Divisions,commercial,retail,and Consumer,that Share the Common Costs

question 102

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:
$$\begin{array} { | l | r | r | } \hline & \text { Connections } & \begin{array} { r } \text { Time on } \\\text { Network (hous) }\end{array} \\\hline \text { Commercial } & 60,000 & 120,000 \\\hline \text { Retail } & 80,000 & 150,000 \\\hline \text { Consumer } & 100,000 & 330,000 \\\hline\end{array}$$ Mesa Telcom uses the single rate method and allocates common costs based on the time on the network.What is the total computer server network cost allocated to the Retail Division?

• A) $429,000.
• B) $600,000.
• C) $657,800.
• D) $3,000,000.

---

Definitions:

Fraternal Twins

Twins originating from the fertilization of two unique eggs by two separate sperm, making them genetically different from one another.

Personalities

Personalities refer to the combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feelings, and behaviors.

Genetic Influences

Refers to how genetic factors contribute to the development and behavior of an organism.

Free-Floating

A term often used to describe anxiety that is not attached to any specific object or situation but is pervasive and chronic.