Answer:
B. $1,093,333.
Explanation:
The computation of the total server network costs allocated to the Consumer Division is shown below:
= (Consumer hours ÷ Total number of hours × Server network cost) + (Consumer hours ÷ Total number of hours × remaining cost)
= (100,000 ÷ 240,000 × $1,700,.000) + (330,000 ÷ 600,000 × $700,000)
= $708,333.33 + $385,000
= $1,093,333
The total number of hours is
= 60,000 + 80,000 + 100,000
= 240,000
The total number of hours is
= 120,000 + 150,000 + 330,000
= 600,000
And, the remaining cost is
= $2,400,000 - $1,700,000
= $700,000
We simply applied the above formula