Talent Engineering Has Two Divisions, Research and Sales, That Share

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:
$$\begin{array} { | l | r | c | } \hline & \text { Calls } & \text { Time on Network (hours) } \\\hline \text { Research } & 50,000 & 60,000 \\\hline \text { Sales } & 40,000 & 165,000 \\\hline\end{array}$$
Required:
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? (Use three decimal places in your calculations.)