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