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

question 48

Multiple Choice

Fenway 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: 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 Consumer Division,assuming the company uses dual-rates to allocate common costs?

• A)$1,200,000.
• B)$1,093,333.
• C)$954,896.
• D)$750,000.

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Definitions:

Oxygen

A chemical element with symbol O, essential for respiration in many organisms and important in various industrial processes.

Isotopes

Forms of the same chemical element that have different numbers of neutrons, leading to variations in their total number of nucleons.

Neutrons

Subatomic particles found in the nucleus of an atom, carrying no electric charge and having a mass slightly larger than that of a proton.

Allotropes

Different forms of the same element in the same physical state with different structures and properties.