1.

The Copy Center is a service department for the operating departments Foster School of Business, which includes the Accounting Department. Rates for usage of the Copy Center for the Accounting Department for 2020 are below:

Fixed Cost	$43,000
Budgeted Variable Cost	$0.38 per page

These budgeted costs are used to determine the transfer price that other departments will pay for their usage of the Copy Center Service Department. Due to an error in the budgeted the price of ink, the Copy Center service department now incurs a cost of $0.74 per page.

How much should the Foster Accounting Department be charged for the year if it printed 500 copies during 2020?

2.

Chipotle is deciding whether to continue making guacamole in the restaurant or buy it from an outside supplier. Chipotle's cost information is as follows (unit is a tub full of guacamole):

	Cost per Unit
Direct Materials	$9.78
Direct Labor	$4.14
Variable Overhead	$2.41
Worker Salary	$6.59
Depreciation of Avocado Peeler	$1.09
Allocated General Overhead	$1.29

Assume the avocado peeler has a salvage value of $0 and cannot be used for any other purpose. Assume all direct labor is variable and the worker can be terminated.

What is the total per unit relevant cost of producing guacamole that Chipotle should consider in its decision?

Round your answer to the nearest cent.