Boxes-2-Go Has Two Divisions,large and Small,that Share the Common Costs

question 24

Multiple Choice

Boxes-2-Go has two divisions,large and small,that share the common costs of the company's communications network.The annual common costs are $4,500,000.You have been provided with the following information for the upcoming year: What is the allocation rate for the upcoming,year assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the time on the network?

• A)$10.98
• B)$10.00.
• C)$8.00.
• D)$7.14.

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