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: Fenway Telcom uses the single rate method and allocates common costs based on the number of connections.What is the total computer server network cost allocated to the Commercial Division?
A)$480,000.
B)$514,286.
C)$600,000.
D)$1,200,000.

Question

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:  Fenway Telcom uses the single rate method and allocates common costs based on the number of connections.What is the total computer server network cost allocated to the Commercial Division?
A)$480,000. 
B)$514,286. 
C)$600,000. 
D)$1,200,000.

Quizplus · Accepted Answer

The Answer of 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:  Fenway Telcom uses the single rate method and allocates common costs based on the number of connections.What is the total computer server network cost allocated to the Commercial Division?
A)$480,000. 
B)$514,286. 
C)$600,000. 
D)$1,200,000.

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