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: CallsTime on Network (hours)Large100,000120,000Small80,000330,000What 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. $8.00.
C. $7.14.
D. $10.00.
Answer: D
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