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Markov Engineering Has Three Divisions,commercial,retail,and Consumer,that Share the Common Costs

question 45

Essay

Markov Engineering 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:  Connections  Time on  Network (hous)  Commercial 60,000120,000 Retail 80,000150,000 Consumer 100,000330,000\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}
Required (use three decimal places in your calculations):
The cost accountant determined $1,800,000 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 the total server network costs allocated to each division?

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Definitions:

ASME

The American Society of Mechanical Engineers, an organization that sets industry standards for mechanical engineering practices, including codes for pressure vessels and piping.

Mechanical Engineers

Experts who use physics and materials science principles to design, analyze, manufacture, and maintain mechanical systems.

Manufacturing Engineers

Professionals who design, implement, and improve the manufacturing processes, systems, or products, focusing on efficiency, quality, and safety.

Exploded View

A diagram or illustration depicting the components of an assembly spaced apart to show their relationship or assembly sequence.

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