Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 14 (2.5 points) The Atlanta Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations

image text in transcribed
Question 14 (2.5 points) The Atlanta 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 300,000 to 500,000 copies: Fixed costs per year $66,000 Variable costs 5 cents (0.05) per copy Budgeted long-run usage in copies per year: Marketing Department 110,000 copies Operations Department 390,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Marketing Department was 120,000 copies and by the Operations Department was 360,000 copies. If a dual-rate cost-allocation method 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 used to allocate variable copying costs. $117,000 O $69,000 C $70,980 O $69,480

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

7th Edition

1119577721, 978-1119577720

More Books

Students also viewed these Accounting questions

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago