Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data

The Charmatz 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 400,000 to 600,000 copies: Fixed costs per year Variable costs Budgeted long-run usage in copies per year. Marketing Department Operations Department Budgeted amounts are used to calculate the allocation rates. $70,000 4 cents (0.04) per copy 120,000 copies 480,000 copies Actual usage for the year by the Marketing Department was 150,000 copies and by the Operations Department was 410,000 copies. If a dual-rate cost - allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department? A. $75,200 B. $67,650 C. $72,400 D. $70,450

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