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Corporation has a central copying facility. The copying facility has only the Marketing Department and the Operations Department. The following data apply to the coming
Corporation has a central copying facility. The copying facility has only the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility 300,000 to 500,000 copies:. Fixcd costs per year Variable costs 000'99$ 5 cents (0.05) per copy Budgeted long-run usage in copies per year. Marketing Department Department 110,000 copies 390,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Markcting Department was 120,000 copics and by the Operations Department was 360,000 copics. If a dual-rate cost-allocation mcthod is used, what amount of copying facility costs will be allocated to the Operations Department? Assume budgeted usage is used to allocate fixed copying costs and actual usage is uscd to allocate variable copying costs.
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