Question
Kimberly Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply
Kimberly Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:
Budgeted costs of operating the copying facility
for 100,000 to 600,000 copies:
Fixed costs per year $63,149
Variable costs $0.08 per copy
Budgeted long-run usage in copies per year:
Marketing Department 91,474 copies
Operations Department 311,867 copies
Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 104,995 copies and by the Operations Department was 386,536 copies. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started