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Barrington Box Enterprises Has Two Divisions,large and Small,that Share the Common

Question 101

Multiple Choice

Barrington Box Enterprises 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:
 Calls  Time on  Network (hous)   Large 100,000120,000 Small 80,000330,000\begin{array} { | l | r | r | } \hline & \text { Calls } & \begin{array} { r } \text { Time on } \\\text { Network (hous) }\end{array} \\\hline \text { Large } & 100,000 & 120,000 \\\hline \text { Small } & 80,000 & 330,000 \\\hline\end{array} What is the allocation rate for the upcoming,year assuming Barrington Box 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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