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?

---

Definitions:

Self-Contained Foreign Subsidiaries

Independent overseas entities of a parent company that manage their operations, accounting, and reporting locally.

Current Rate

The present value of foreign currencies in terms of domestic currency, used in converting foreign transactions to the domestic currency denomination in accounting.

Translation

In accounting, refers to the process of converting financial statements from one currency into another, often for consolidation purposes.

Foreign Currency Transactions

Foreign currency transactions involve the exchange of one country's currency for another, affecting companies that engage in international trade or investment.