Answer: $1,870,000
Explanation:
Total cost of computer support = $4,000,000
North division = 3800 calls per year
North division = 18,200 hours network time
South division = 4200 calls per year
South division = 21,800 hours network time
Total amount allocated on basis of number of calls = $2,500,000
Tot allocated on basis of network time =
$4,000,000 - $2,500,000 = $1,500,000
Total amount allocated to North division =
[(2,500,000/(3800+4200)) × 3800] + [(1,500,000 / (18,200+21,800)) × 18,200]
(312.5 × 3800) + (37.5 × 18200)
$1,187,500 + $682500 = $1,870,000
$1,870,000
